Reference no: EM132524513

Question - The July bank statement for PennyWise, Inc. showed a balance per bank of $3,600. The firm's cash account in its accounting records showed a balance of $1,306 on July 31. Other relevant information includes:

The bank returned an NSF check for $80 from a customer.

The firm made and recorded a cash deposit of $840 on July 31, but that amount does not appear on the bank statement.

The bank had correctly paid a check for $1,640 that PennyWise had sent to one of the firm's suppliers in payment of an account. However, PennyWise had incorrectly recorded the check as $1,460.

$760 in checks written by PennyWise in June and $1,200 of checks written in July still had not cleared the bank as of July 31.

The bank statement showed a $1,454 increase to the PennyWise account, representing collection of a customer's note for $1,330 plus accrued interest.

The bank statement showed that the bank took $20 out of the PennyWise account for service charges in July.

Required - Prepare the July bank reconciliation for PennyWise.