The bank reconciliation prepared by Winfield Construction on June 30, 2023, appeared as follows:

The Cash account in the general ledger appeared as follows on July 31:

A list of deposits made and cheques written during July, taken from the cash receipts journal and cash disbursements journal, is shown below:

The following bank statement is available for July:

In reviewing cheques returned by the bank, the bookkeeper noted that cheque #96 written by Winburn Construction in the amount of $391 was charged against Winfield’s account in error by the bank. The NSF cheque was regarding a customer account, Jim Anderson.

Required
1. Prepare a bank reconciliation at July 31.
2. Prepare the necessary journal entry to bring the general ledger Cash account into agreement with the adjusted balance on the bank reconciliation.

Analysis Component:
If the journal entries in Part 2 were not recorded, what financial statement elements (profit, assets, liabilities, and equity) would be over- or understated?

Transcribed Image Text:

Winfield Construction Bank statement balance Add: Bank Reconciliation June 30, 2023 $8,700 Book balance Deposit of June 30 in transit 1,300 $10,000 Deduct: Outstanding cheque #14 Adjusted bank balance $9,260 740 $ 9,260 Adjusted book balance $9,260