Problem 6-20A Adjustments to the cash account based on the bank reconciliation

Internal Control and Accounting for Cash

Problem 6-20A Adjustments to the cash account based on the bank reconciliation

Required

Determine whether the following items included in Wong Company’s January Year 1 bank reconciliation will require adjusting or correcting entries on Wong’s books. When an entry is required, record it in general journal format.

a. Service charges of $50 for the month of January were listed on the bank statement.
b. The bank charged a $250 check drawn on Wing Restaurant to Wong’s account. The check was included in Wong’s bank statement.
c. A check of $62 was returned to the bank because of insufficient funds and was noted on the bank statement. Wong received the check from a customer and thought it was good when it was deposited into the account.
d. A $990 deposit was recorded by the bank as $980.
e. Four checks totaling $810 written during the month of January were not included with the January bank statement.
f. A $75 check written to OfficeMax for office supplies was recorded in the general journal as $57.
g. The bank statement indicated that the bank had collected a $450 note for Wong.
h. Wong recorded $900 of receipts on January 31, Year 1, which were deposited in the night depository of the bank. These deposits were not included in the bank statement.

Problem 6-21A Bank reconciliation and adjustments to the cash account

The following information is available for Park Valley Spa for July Year 1:
Park Valley Spa
10 Main Street
Bolta Vista, NV 10001

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 $1,102.
6. The unadjusted Cash account balance at July 31 was $13,200.

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.