Ask Question
1 June, 11:07

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 $16,695

Add: Deposits in transit 3,673

Deduct: Outstanding checks (4,770)

Balance per books $15,598

Month of July Results

Per Bank Per Books

Balance July 31 $20,631 $22,061

July deposits 10,733 13,857

July checks 9,540 7,394

July note collected (not included-

in July deposits) 3,578

July bank service charge 36

July NSF check from a customer,-

returned by the bank (recorded-

by bank as a charge) 799

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.)

+1
Answers (1)
  1. 1 June, 12:36
    0
    Journal Entries

    Dr. Bank ... 3,578

    Cr. Note Receivable ... 3,578

    Being note receivable collected but not recorded in deposits

    Explanation:

    1. July note collected (not included - in July deposits) 3,578

    Journal Entries

    Dr. Bank ... 3,578

    Cr. Note Receivable ... 3,578

    Being note receivable collected but not recorded in deposits

    2. July bank service charge 36

    Journal Entries

    Dr. Bank Charges ... 36

    Cr. Bank ... 36

    Being bank charges for the month of July

    3. July NSF check from a customer returned by the bank (recorded-

    by bank as a charge) 799

    Journal Entries

    Dr. Account Receivable ... 799

    Cr. Bank Charges ... 799

    Being recognition of NSF check returned and correction of bank error of being posted as bank charges
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Angela Lansbury Company deposits all receipts and makes all payments by check. The following information is available from the cash ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers