Bank Reconciliation $16,185 $575 470 1,050 910 3,005 The following bank reconciliation was prepared as of June 30, 2017: Poway Co. Bank Reconciliation For the Month Ended June 30, 2047 Cash balance according to bank statement Add: Outstanding Check No. 1067 Outstanding Check No.1106 Outstanding Check No.1110 Outstanding Check No.1113 Total additions Deduct: Deposit of June 30 not recorded by bank Adjusted balance Cash balance according to company's records Add: Proceeds of note collected by bank: Face value Proceeds of note collected by bank: Interest Service charges Total additions Deduct: Check returned because of insufficient funds Error in recording June 17 deposit of $7,150 as $1,750 Total deductions (6,600) $12,590 $8,985 $6,000 300 15 6,315 $890 5,400 (6,290) Adjusted balance $9,010 a. a. Identify the errors in the following bank reconciliation: Item Heading Correct Should be June 30, 2017 Should be deducted from balance per bank statement Should be added to balance per company's records Outstanding checks Deposit of June 30 Service charges Error in June 17 deposit Adjusted balance per the bank 16,185 b. Prepare a corrected bank reconciliation. Poway Co. Bank Reconciliation June 30, 2017 Cash balance according to bank statement Add: Deposit in transit on June 30 Deduct: Outstanding Check No. 1067 Outstanding Check No. 1106 Outstanding Check No. 1110 Outstanding Check No. 1113 6,600 575 470 1,050 910 Total deductions 3,595 Adjusted balance 19,780 b. Prepare a corrected bank reconciliation. 16,185 6,600 Poway Co. Bank Reconciliation June 30, 2047 Cash balance according to bank statement Add: Deposit in transit on June 30 Deduct: Outstanding Check No. 1067 Outstanding Check No. 1106 Outstanding Check No. 1110 Outstanding Check No. 1113 575 470 1,050 910 Total deductions 3,595 $ 19,780 $ 8,985 6,000 Adjusted balance Cash balance according to company's records Deduct: Note collected by bank, including $300 interest Error in recording June 17 deposit as $1,750 instead of $7,150 Total additions Add: Check returned because of insufficient funds Bank service charges 300 5,400 890 15 Total deductions 10,795 Adjusted balance 19,780