Problem 7-6B Preparing a bank reconciliation and recording adjustments LOG CHECK FIGURE: a. Adjusted book balance = $13,929 The bank reconciliation prepared by Village-on-the-Lake Condos on May 31, 2023. is shown below: Bank statement balance Add: Deduct: Deposit of May 31 in transit Outstanding cheques: #103 #120 Adjusted bank balance The Cash account in the general ledger appeared as follows on June 30: \'11lag(.'-()11thLake Condos Bank Rcconc,hahon \la, 31, 2023 $ 2.060 Jl,500 $14.560 $6.520 ...!\.130 JQ.650 $ 3.910 Book balance Adjusted book balance Cash Acct No 101 $3.910 Date Explanation PR Debit Credit Balance May June 2023 31 30 30 Balance CR21 CD16 38,680 A list of deposits made and cheques written during June, taken from the cash receipts journal and cash disbursements journal. is shown below: June 5 10 15 20 27 30 30 Total June Cash Receipts Deposits Made The following bank statement is available for June: To: Village-on-the-Lake Condos Cheques/Charges #133 06/02 #136 06/05 #129 06/10 #130 06/15 #103 06/20 #134 06/27 #128 06/30 SC 06/30 NSF= Not Sufficient Funds $ 590 1.120 5,690 4,510 7,830 12,600 ,340 $38,680 4,550 115 680 9,750 6,520 6,780 450 400 SC= Service Charge No. 127 128 129 130 131 132 133 134 135 136 Total June Cash Disbursements Bank Statement Deposits/Credits 06/02 06/05 06/10 06/15 06/20 06/27 06/30 PMT = Principal Payment 31,861 Cheques Written June 30, 2023 Bank of Nova Scotia 12,500 590 1,120 5,690 4,510 7,830 16,200 I Balance 2,060 10,010 10,485 10,925 6,865 4,855 5,905 21,655 21,255 3,910 42,590 10,729 $ 2.100 450 680 9,750 196 6,420 4,550 6,780 820 jJ..:i. $31,861 INT= Interest In reviewing deposits recorded by the bank, the bookkeeper discovered that the deposit from customer Darla Smith dated June 30, recorded in the cash receipts journal incorrectly as $12,600. was recorded by the bank correctly as $16,200. Required a. Prepare a bank reconciliation at June 30. b. Prepare the necessary journal entries to bring the general ledger Cash account into agreement with the adjusted balance on the bank reconciliation. Problem 7-88 Preparing a bank reconciliation and recording adjustments@ LOG CHECK FIGURE: 1. Adjusted book balance ; $35,201.35 Yardworx reconciled its book balance of Cash with its bank statement balance on April 30 and showed two cheques outstanding at that time. # 1771 for$ 15.463.JO and # 1780 for $955.65. The following information is available for the May 31, 2023, reconciliation: From the May 31, 2023, bank statement: Balance of previous statement on Apr. 30/23 5 deposits and other credits totalling 9 cheques and other debits totalling Current balance as of this statement Chequing Account Transactions Transaction Transaction Date Amount Description Date Amount Description May 0 4 14,662.30 +Deposit May 25 5,200.00 +Credit memo 14 849.25 +Deposit 26 4,210.10 +Deposit 18 15,600.40 -NSF cheque 31 135.00 -Service charge 22 1,166.45 +Deposit Date Cheque No. Amount Date Cheque No. Amount May 0 1 1784 7,600.00 May 26 1785 620.15 02 1783 1,465.80 28 1771 15,463.10 15 1787 2,334.75 29 1788 985.65 16 1782 12,800.55 From Yardworx's accounting records: $61,045.95 26,088.10 57,005.40 30,128.65 llall' [xplanatrnn PR Debit Credit Balance May Apr. May 4 14 22 26 31 2023 30 31 31 Total May Cash Receipts Balance Deposits Made CR7 CD8 $14,662.30 849.25 1,166.45 4,210.10 J!,400.95 $29,289.05 29,289.05 28,089.50 Cheques Written No. 1782 1783 1784 1785 1786 1787 1788 1789 Total May Cash Disbursements 44,627.20 73,916.25 45.826.75 $12,800.55 1,465.80 7,600.00 620.15 974.35 2,334.75 895.65 j,398.25 $28,089.50 Cheque# 1788 was correctly written for $985.65 to pay for May utilities; however, the bookkeeper misread the amount and entered it in the accounting records with a debit to Utilities Expense and a credit to Cash as though it were for $895.65. The bank paid and deducted the correct amount. Page 8 The NSF cheque was originally received from a customer, Gertie Mayer, in payment of her account. Its return was unrecorded. The credit memo resulted from a $5,300 electronic fund transfer for the collection of a customer payment. The bank had deducted a$ JOO bank service charge fee. The collection has not been recorded in the company's books. Required 1. Prepare a bank reconciliation for Yardworx. 2. Prepare the general journal entries needed to adjust the book balance of Cash to the reconciled balance.