Question

The following information is available for Park Valley Spa for July Year 1:

BANK STATEMENT STATE BANK BOLTA VISTA, NV 10001
Park Valley Spa 10 Main Street Bolta Vista, NV 10001				Account number 12-4567 July 31, Year 1
Beginning balance 6/30/Year 1				$	9,650
Total deposits and other credits					29,803
Total checks and other debits					22,505
Ending balance 7/31/Year 1					16,948
Checks and Debits				Deposits and Credits
Check No.	Amount			Date			Amount
2350	$	3,768		July	1		$	1,106
2351		1,643		July	10			6,493
2352		8,002		July	15			4,929
2354		1,395		July	21			6,170
2355		6,187		July	26			5,965
2357		1,498		July	30			2,088
DM		12		CM				3,052

The following is a list of checks and deposits recorded on the books of the Park Valley Spa for July Year 1:

Date			Check No.	Amount of Check			Date		Amount of Deposit
July	2		2351	$	1,643		July	8	$	6,493
July	4		2352		8,002		July	14		4,929
July	10		2353		2,892		July	21		6,170
July	10		2354		1,395		July	26		5,965
July	15		2355		6,187		July	29		2,088
July	20		2356		75		July	30		3,548
July	22		2357		1,498

Other Information

1. Check no. 2350 was outstanding from June.
2. The credit memo was for collection of notes receivable.
3. All checks were paid at the correct amount.
4. The debit memo was for printed checks.
5. The June 30 bank reconciliation showed a deposit in transit of $1,106.
6. The unadjusted Cash account balance at July 31 was $14,489.

Required
a. Prepare the bank reconciliation for Park Valley Spa at the end of July.
b. Record in general journal form any necessary entries to the Cash account to adjust it to the true cash balance.
  

Answer 1