Question

Park Playground, Inc. has lost some of its accounting records regarding its July cash receipts and...

Park Playground, Inc. has lost some of its accounting records regarding its July cash receipts and payments. It reconciled its June 30, 2020 bank statement on July 2 and made the related adjusting entries at that time. The company has not reconciled its July 31, 2020 bank statement. It provides you with the following information on August 3:

7/31/2020
Cash account balance $3,278
Bank statement balance 7,010
Deposits in transit 564
Outstanding checks (cleared next month) 920
Bank service charge 44
Bank charges−NSF checks returned 380
Collection by bank of company's notes receivable 4,000

In addition, it was found that a July check for $320 (included in the July 31 bank statement) to purchase office supplies was erroneously recorded in the checkbook for $120.

Required:
a. Prepare a bank reconciliation for the month ended July 31, 2020.
b. Prepare the correcting entry for the month ended July 31, 2020.
Amount Descriptions
Check error
Deposits in transit
Notes receivable
NSF checks
Outstanding checks
Service charge
Business   Accounting   
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