E7-24B (Bank Reconciliation and Adjusting Entries) Wang Company deposits all receipts and makes all payments by check.

*E7-24B (Bank Reconciliation and Adjusting Entries) Wang 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                               $14,000

Add: Deposits in transit                         3,080

Deduct: Outstanding checks              (4,000)

Balance per books                            $13,080

                                                                           Month of July Results 

                                                                                 Per Bank                                          Per Books

Balance July 31                                                    $17,300                                              $18,500

July deposits                                                           10,000                                                11,620

July checks                                                                8,000                                                   6,200

July note collected (not included in July)              2,000                                                     —

July bank service charge                                              30                                                      —

July NSF check from a cust, returned by the bank 670                                                     —

(recorded by bank as a charge)

Instructions

(a) Prepare a bank reconciliation going from balance per bank and balance per book to correct cash balance.

(b) Prepare the general journal entry or entries to correct the Cash account.