Question

Pronghorn 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 $15,400 Add: Deposits in transit 3,388 Deduct: Outstanding checks (4,400 ) Balance per books $14,388 Month of July Results Per Bank Per Books Balance July 31 $19,030 $20,350 July deposits 11,000 12,782 July checks 8,800 6,820 July note collected (not included in July deposits) 2,200 July bank service charge 33 July NSF check from a customer, returned by the bank (recorded by bank as a charge) 737

(b) 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

Answer 1

(a)
Pronghorn Lansbury Company Bank Reconciliation July 31
Balance per bank statement, July 31		$ 19,030
Add: Deposits in transit            ( $ 3,388 + $ 12,782 (-) $ 11,000)		$ 5,170
Less: Outstanding checks             ( $ 4,400 (-) $ 8,800 (+) $ 6,820)		($ 2,420)
Correct cash balance, July 31		$ 21,780
Balance per books, July 31		$ 20,350
Add: Collection of note		$ 2,200
Less: Bank service charge	($33)
Less: NSF check 335	($737)	($770)
Corrected cash balance, July 31		$ 21,780
(b)
Account Titles and Explanation	Debit	Credit
Cash - bal. Fig	$ 1,430
Bank Service Charge	$ 33
Accounts Receivable	$ 737
Notes Receivable		$ 2,200