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Bank Reconciliation - Angela Lansbury Company

Please see attached.

Angela Lansbury Company deposits all receipts and makes all payments by check. The following information is available from the cash records.
June 30 Bank Reconciliation
Balance per bank $7000
Add: Deposit in transit 1540
Deduct: Outstanding Checks (2,000)
Balance per books $6,540

Month of July Results
Per Bank Per Books
Balance July 31 8650 9250
July deposits 5000 5810
July Checks 4000 3100
July note collected 1000 -
(not included in July deposits)
July bank service charge 15 -
July NSF check from a customer, 335 -
returned by the bank
(recorded by bank as a charge)

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.

Attachments

Solution Preview

Please see the attached file.

In a bank reconciliation we reconcile the bank and book balance so that both are the
same. Transactions which are recorded in the books and are not reflected in the bank
(such as checks not cleared or deposits not credited) are adjusted in bank. Debits and
credits in the bank, not recorded in the books are adjusted in the books

Angela Lansbury Company
Bank ...

Solution Summary

The solution has the bank reconciliation for Angela Lansbury Company and the related adjusting entries

$2.19