Angela Lansbury Company deposits all receipts and makes all payments by check. The following information is available from the cash records.

June 30 Bank ReconciliationBalance per bank...........................................$ 7,000Add: Deposits in transit....................................1,540Deduct: Outstanding checks.........................(2,000)Balance per books..........................................$ 6,540

Instructions

a. Prepare a bank reconciliation going from balance per bank and balance per book to correct cash balance.

b. Prepare the general journal entry or entries to correct the Cash account.

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Month of July Results Per Bank Per Books Balance July 31 July deposits July checks July note collected (not included in July deposits) July bank service charge July NSF check from a customer, returned by the bank (recorded by bank as a charge) $8,650 $9,250 5,810 3,100 5,000 4,000 1,000 15 335