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    Bank Reconciliation - Angela Lansbury Company

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    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)

    (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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    Solution Preview

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    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 ...

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