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				$	9,770
Total deposits and other credits					29,805
Total checks and other debits					22,513
Ending balance 7/31/Year 1					17,062
Checks and Debits				Deposits and Credits
Check No.	Amount			Date			Amount
2350	$	3,768		July	1		$	1,104
2351		1,641		July	10			6,495
2352		8,000		July	15			4,927
2354		1,397		July	21			6,177
2355		6,189		July	26			5,964
2357		1,502		July	30			2,085
DM		16		CM				3,053

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	$	1,641		July	8	$	6,495
July	4		2352		8,000		July	14		4,927
July	10		2353		2,898		July	21		6,177
July	10		2354		1,397		July	26		5,964
July	15		2355		6,189		July	29		2,085
July	20		2356		72		July	30		3,548
July	22		2357		1,502

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 $1,104.
6. The unadjusted Cash account balance at July 31 was $14,603.

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.
  

A. record the collection of notes recievable

event	general journal	debit	credit
1

B. record cash paid for office supplies expenses

event	general journal	debit	credit
2

Answer 1

Solution 1:

Park Valley Spa
Bank Reconciliation - July 31
Bank's Cash balance	Company's cash balance
Particulars	Amount	Particulars	Amount
Ending balance as per Bank Statements	$17,062.00	Ending Balance as per cash books	$14,603.00
Additions:		Additions:
Outstanding Deposits	$3,548.00	Collection of note	$3,053.00
Deductions:		Deductions:
Outstanding Checks (Check 2353, 2356)	$2,970.00	Check printing charges	$16.00
Up to date cash balance as per bank	$17,640.00	Up to date cash balance as per books	$17,640.00

Solution b:

Journal Entries - Park Valley Spa
Date	Particulars	Debit	Credit
31-Jul	Cash Dr	$3,053.00
	To Note receivables		$3,053.00
	(To record collection of note)
31-Jul	Miscellaneous expenses Dr	$16.00
	To Cash		$16.00
	(To record check printing charges debited)