Bank reconciliation and entries

Instructions

Chart of Accounts

Labels and Amount Descriptions

Bank Reconciliation

Journal

Final Questions

Instructions

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 have been taken from various documents and records and are reproduced as follows. The sources of the data are printed in capital letters. All checks were written for payments on account.

BANK RECONCILIATION FOR PRECEDING MONTH (DATED JUNE 30):
Cash balance according to bank statement		$9,422.80
Add deposit of June 30, not recorded by bank		780.80
		$10,203.60
Deduct outstanding checks:
No. 580	$310.10
No. 602	85.50
No. 612	92.50
No. 613	137.50	625.60
Adjusted balance		$ 9,578.00
Cash balance according to companys records		$ 9,605.70
Deduct service charges		27.70
Adjusted balance		$ 9,578.00

CASH ACCOUNT:

Balance as of July 1: $9,578.00

CASH RECEIPTS FOR MONTH OF JULY: $6,465.42

DUPLICATE DEPOSIT TICKETS:

Date and amount of each deposit in July:

Date	Amount		Date	Amount		Date	Amount
July 2	$569.50		July 12	$580.70		July 23	$713.45
5	701.80		16	600.10		26	601.50
9	819.24		19	701.26		31	1,177.87

CHECKS WRITTEN: Number and amount of each check issued in July:

Check No.	Amount		Check No.	Amount		Check No.	Amount
614	$243.50		621	$309.50		628	$837.70
615	350.10		622	Void		629	329.90
616	279.90		623	Void		630	882.80
617	395.50		624	707.01		631	1,081.56
618	435.40		625	158.63		632	325.40
619	320.10		626	550.03		633	310.08
620	238.87		627	381.73		634	241.71

Total amount of checks issued in July: $8,379.42

JULY BANK STATEMENT:

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Required:

1.

Prepare a bank reconciliation as of July 31. 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. Refer to the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. (Note: Deduct, Add, No. or colons (:) will automatically appear if required.)

2.

Journalize the necessary entries. The accounts have not been closed. Refer to the Chart of Accounts for exact wording of account titles.

3.

What is the amount of Cash that should appear on the balance sheet as of July 31?

4.

Assume that a canceled check for $180 has been incorrectly recorded by the bank as $1,800. Select how the error would be included in a bank reconciliation and how it should be corrected.

Bank reconciliation and entries

Instructions

Chart of Accounts

Labels and Amount Descriptions

Bank Reconciliation

Journal

Final Questions

Chart of Accounts

CHART OF ACCOUNTS

SUNSHINE INTERIORS

General Ledger

	ASSETS
110	Cash
111	Petty Cash
120	Accounts Receivable
131	Notes Receivable
141	Merchandise Inventory
145	Office Supplies
146	Store Supplies
151	Prepaid Insurance
181	Land
191	Office Equipment
192	Accumulated Depreciation-Office Equipment
193	Store Equipment
194	Accumulated Depreciation-Store Equipment

	LIABILITIES
210	Accounts Payable
221	Notes Payable
222	Interest Payable
231	Salaries Payable
241	Sales Tax Payable

	EQUITY
310	Common Stock
311	Retained Earnings
312	Dividends
313	Income Summary

	REVENUE
410	Sales
610	Interest Revenue

	EXPENSES
510	Cost of Merchandise Sold
515	Credit Card Expense
516	Cash Short and Over
520	Salaries Expense
531	Advertising Expense
532	Delivery Expense
533	Insurance Expense
534	Office Supplies Expense
535	Rent Expense
536	Repairs Expense
537	Selling Expenses
538	Store Supplies Expense
561	Depreciation Expense-Office Equipment
562	Depreciation Expense-Store Equipment
590	Miscellaneous Expense
710	Interest Expense

. Journalize the necessary entries. The accounts have not been closed. Refer to the Chart of Accounts for exact wording of account titles.

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JOURNAL

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