Question

Sandra 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
$29,400
Add: Deposits in transit
6,468
Deduct: Outstanding checks (8,400)
Balance per books
$27,468
Month of July Results
Balance July 31
July deposits
July checks
July note collect (not included in July deposits)
July bank service charge
July NST check from a customer, returned by the bank (recorded by bank as a charge)
Per Bank
$36,330
18,900
16,800
6,300
63
1,407
Per Books
$38,850
24,402
13.020
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Answer 1

Sandra Lansbury Company

Bank Reconciliation

Balance per bank statement, July 31 $36,330

Add: Deposits in transit $11,970 ($6,468+$24,402-$18,900)

Less: Outstanding checks ($4,620) ($8,400-$16,800+$13,020)

Correct cash balance, July 31 $43,680

Balance per books, July 31 $38,850

Add: Collection of note $6,300

Less: Bank service charge $63

Less: NSF check 335 $1,407

Corrected cash balance, July 31 $43,680