Question

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		$7,000
Add: Deposits in transit		1,540
Deduct: Outstanding checks		(2,000	)
Balance per books		$6,540

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

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

ANGELA LANSBURY COMPANY Bank Reconciliation July 31
select an opening name for section one Outstanding checksCorrect cash balance, July 31Collection of noteBank service chargeBalance per bank statement, July 31Deposits in transitNSF check					$enter a dollar amount
select between addition and deduction LessAdd :	select a reconciling item Correct cash balance, July 31Understated check for suppliesBalance per books, July 31Balance per bank statement, July 31Bank service chargeCollection of noteNSF checkDeposits in transit				enter a dollar amount
select between addition and deduction AddLess :	select a reconciling item Outstanding checksCollection of noteBalance per books, July 31Bank service chargeNSF checkCorrect cash balance, July 31Understated check for suppliesBalance per bank statement, July 31				enter a dollar amount
select a closing name for section one NSF checkBalance per books, July 31Deposits in transitOutstanding checksCollection of noteBank service chargeCorrect cash balance, July 31Balance per bank statement, July 31					$enter a total amount for section one
select an opening name for section two Collection of noteBank service chargeNSF checkCorrect cash balance, July 31Deposits in transitOutstanding checksBalance per books, July 31					$
select between addition and deduction AddLess :	select a reconciling item Bank service chargeBalance per bank statement, July 31Collection of noteDeposits in transitNSF checkCorrect cash balance, July 31Outstanding checksBalance per books, July 31				enter a dollar amount
select between addition and deduction AddLess :
	select a reconciling item     NSF check    Balance per bank statement, July 31    Correct cash balance, July 31    Bank service charge    Deposits in transit    Outstanding checks    Balance per books, July 31    Collection of note		$enter a dollar amount
	select a reconciling item     Correct cash balance, July 31    Deposits in transit    Balance per books, July 31    Balance per bank statement, July 31    Outstanding checks    Collection of note    Bank service charge    NSF check		enter a dollar amount
					enter a subtotal of the two previous amounts
select a closing name for section two NSF checkOutstanding checksBank service chargeCollection of noteCorrect cash balance, July 31Balance per books, July 31Balance per bank statement, July 31Deposits in transit					$enter a total amount for section two

SHOW LIST OF ACCOUNTS

LINK TO TEXT

Prepare the general journal entry to correct the Cash account. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Account Titles and Explanation	Debit	Credit
enter an account title	enter a debit amount	enter a credit amount
enter an account title	enter a debit amount	enter a credit amount
enter an account title	enter a debit amount	enter a credit amount
enter an account title	enter a debit amount	enter a credit amount

Answer 1

Answer a.

Deposits in transit, July 31 = Deposits in transit, June 30 + Deposits per books - Deposits per bank
Deposits in transit, July 31 = $1,540 + $5,810 - $5,000
Deposits in transit, July 31 = $2,350

Outstanding checks, July 31 = Outstanding checks, June 30 + Checks per books - Checks per bank
Outstanding checks, July 31 = $2,000 + $3,100 - $4,000
Outstanding checks, July 31 = $1,100

Answer b.