Adjusted balance PR 7-5B Bank reconciliation and entries Sunshine Interiors deposits all cash receipts each Wednesday and Friday in a night depository, after banking hours. The data required to reconcile the bank statement as of July 31, 20YO, have been taken from various documents and records and are reproduced as follows. The sources the data are printed in capital letters. All checks were written for payments on account. Obj.5 $11.494 CASH ACCOUNT: Balance as of July 1 CASH RECEIPTS FOR MONTH OF JULY DUPLICATE DEPOSIT TICKETS: Date and amount of each deposit in July: $9,578,00 6,465.42 Date July 2 Amount $569.50 701.80 819.24 Date July 12 16 19 Amount $580.70 600.10 701.26 Date July 23 26 31 Amount S 713.45 601.50 1,177.87 5 - 622 CHECKS WRITTEN: Number and amount of each check issued in July: Check No. Amount Check No. Amount 614 $243.50 621 $309.50 615 350.10 Void 616 279.90 623 Void 395,50 617 707.01 624 618 435.40 625 626 320.10 550.03 619 381.73 620 238.87 Total amount of checks issued in July Check No. 628 629 630 631 632 633 634 Amount 837.70 329.90 882.80 1,081,56 325.40 310.08 241.71 $8,37942 158.63 627 (Continued) Chapter 7 Internal Control and Cash SA BANK RECONCILIATION FOR PRECEDING MONTH Sunshine Interiors Bank Reconciliation June 30, 20YO Cash balance according to bank statement Adjustments: Deposit of June 30 not recorded by bank. Outstanding Check No. 580.. Outstanding Check No. 602.. Outstanding Check No. 612 Outstanding Check No. 613.. Total adjustments... Adjusted balance........ $ 780.80 (310.10) (85.50) 192.50) (137.50 595720 59.605.30 Cash balance according to company's records. Adjustments: Bank service charges. Adjusted balance...... 59.5730 JULY BANK STATEMENT: PAGE 1 MEMBER FDIC AMERICAN NATIONAL BANK OF DETROIT DETROIT, MI 43201-2500 (313) 933-8547 ACCOUNT NUMBER FROM 7/01/ROYO BALANCE 9 DEPOSITS 20 WITHDRAWALS TO 7/81/ROYO 9.422.80 8.088.35 7.686.74 SUNSHINE INTERIORS 4 OTHER DEBITS AND CREDITS 3,749.00CH NEW BALANCE 11,601.41 10,101.64 13.106.50 ------CHECKS AND OTHER DEBITS ----- - DEPOSITS -.-DATE-.-BALANCE- No 580 310.10 No. 012 08.30 780.80 07/01 9,501.00 Na. 802 85.50 No. 814 348.50 300.50 07/03 10.041.50 No 815 30.10 No. 618 279.00 701.30 OT/00 10,113.30 No 017 305.50 No. 618 435.40 819.24 07/11 No 619 30.10 No. 60 2:38.87 880.70 07/13 10.123 37 Not 308.00 No 684 707.01 MS 4,000.00 07/14 No. 158.63 No. 626 660.08 MS 160.00 - 04 13.558,00 07/14 316 7 8. 629 30 31 600.10 No 630 07/17 0 N 631 1.081.56 NS 375.00 02/20 No 632 32.40 634 241.71 701.28 07/21 10.304. 731.48 - 07/24 11,035. 801.50 30 07/28 11.637.41 36.00 OT/31 11.60141 -ERROR CORRECTION MS-MISCELLANROOS OD-OVERDRAFT - HOT BOYYICEDIT YUNDS PS - PAYMENT STOPPED 30-SERVICE CHARGE 12,500 67 10.170 31 THE ROOMCILOT OF THE STATEMENT WITH YOUR RECORDS IS ESSENT ATT ERROR OR COTON SHOULD REPORTED IMMEDIATELY 377 Chapter 7 Internal Control and Cash Instructions 1. Prepare a bank reconciliation as of July 31, 2040. If errors in recording deposits or checks are discovered, assume that the errors were made by the company. Assume that all deposits are from cash sales. All checks are written to satisfy accounts payable. 2. Journalize the necessary entries. 3. What is the amount of cash that should appear on the balance sheet as of July 31, 20Y0? Assume that a canceled check for $180 has been incorrectly recorded by the bank as $1,800. Briefly explain how the error would be included in a bank reconciliation and how it should be corrected. ysis for Decision Making ADM-1 Continuing Company Analysis-Amazon: Days' cash on hand 10 of the largest Internet retailers in the world. Netflix, Inc. pro- Inited States. Amazon and Netflix compete in roducts online. The