Reference no: EM133029295

Question - On July 31, 2017, the Cash in Bank account of Lope Dalisay Blades had a balance of 72,166. On that date, the bank statement indicated a balance of 95,347.50. Comparison of returned checks and bank memos revealed the following:

1. Deposits in transit as of July 31 amounted to 31,407.50

2. Outstanding checks as at July 31 totaled 14,6793.

3. The bank erroneously debited a 3,250 check of Lopez Glades against the Lope Dalisay Blades bank account.

4. A 250 bank service charge has not been recorded in the books.

5. Lope Dalisay neglected to record 40,000 borrowed from the bank on a 10% six-month note. The bank statement already reflected the credit of 40,000.

6. Included with the returned paid checks is a memo indicating that Julio Mercado's check for 6,400 had been returned DAIF. Mercado, a customer, had sent the check as payment of an account of 6,600 less a 200 discount.

7. Lope Dalisay recorded a 1,090 payment for repairs as 10,900.

REQUIRED -

1. Prepare the bank reconciliation for Lope Dalisay Blades at July 31, 2017.

2. Prepare the journal entries to update the Cash in Bank account.