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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

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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, 2010, 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. CASH ACCOUNT: Balance as of July 1 $9,580.00 6,466.42 CASH RECEIPTS FOR MONTH OF JULY DUPLICATE DEPOSIT TICKETS: Date and amount of each deposit in July Date Amount Date Amount $580.70 Date July 23 July 2 $569.50 July 12 5 701.80 600.10 26 819.24 701.26 31 16. 19 Amount $714.45 601.50 1,177.87 CHECKS WRITTEN: Number and amount of each check Issued in July: Check No. Amount Check No. 614 $243.50 621 615 350.10 622 616 279.90 623 617 395.50 624 618 435.40 625 619 320.10 626 620 238.87 627 Total amount of checks issued in July Amount $309.50 Vold Vold 707.01 158.63 550.03 391.73 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 $8,389.42 BANK RECONCILIATION FOR PRECEDING MONTH: Sunshine Interiors Bank Reconciliation June 30, 20Y0 Cash balance according to bank statement Add: Deposit of June 30 not recorded by bank Deduct: Outstanding Check No. 580 Outstanding Check No. 602 Outstanding Check No. 612 Outstanding Check No. 613 Total deductions Adjusted balance Cash balance according to company's records Deduct: Bank service charges Adjusted balance JULY BANK STATEMENT: ($310.10) (85.50) (92.50) (137.40) $9,424.70 $780.80 (625.50) $9,580.00 $9,607.70 (27.70) $9,580.00 MEMBER FDIC AMERICAN NATIONAL BANK OF DETROIT DETROIT, MI 48201-2500 (313) 933-8547 SUNSHINE INTERIORS CHECKS AND OTHER DEBITS 310.10 No. 612 92.50 85.50 No. 614 243.50 350.10 No. 616 279.90 395.50 No. 618 435.40 320.10 No. 620 238.87 309.50 No. 624 707.01 158.63 No. 626 550.03 319.73 No. 629 329.90 882.80 No. 631 1,081.56 NSF 370.00 325.40 No. 634 241.71 SC 36.00 No. 580 No. 602 No. 615 No. 617 No. 619 No. 6211 No. 625 No. 627 No. 630 No. 632 PAGE 1 TO 7/31/20Y0 9,424.70 6,096.35 7,657.74 3,754.00CR 11,617.31 DEPOSITS DATE BALANCE 780.80 07/01 9,802.90 569.50 07/03 10,043.40 701.80 07/06 10,115.20 819.24 07/11 10,103.54 580.70 07/13 10,125.27 MS 4,000.00 07/14 13,108.76 MS 160.00 12,560.10 600.10 07/14 07/17 07/20 12,510.57 10,176.21 701.26 07/21 10,310.36 741.45 07/24 11,051.81 601.50 07/28 11,653.31 07/31 11,617.31 ACCOUNT NUMBER FROM 7/01/20YO BALANCE 9 DEPOSITS 20 WITHDRAWALS 4 OTHER DEBITS AND CREDITS NEW BALANCE 36.00 OD OVERDRAFT PS PAYMENT STOPPED SC SERVICE CHARGE THE RECONCILEMENT OF THIS STATEMENT WITH YOUR RECORDS IS ESSENTIAL ANY ERROR OR EXCEPTION SHOULD BE REPORTED IMMEDIATELY. SC EC ERROR CORRECTION MS MISCELLANEOUS NSF NOT SUFFICIENT FUNDS 07/31 11,617.31 1. Prepare a bank reconciliation as of July 31, 2010. 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. When required, enter amounts in dollars and cents. Sunshine Interiors Bank Reconciliation July 31, 2010 Cash balance according to bank statement Add: Deposit in transit on July 310 Deduct: Outstanding Check no. 613 137.40 Deduct Outstanding Check No. 628 837.70 Deduct: Outstanding Check No. 633 310.08 Total deductions Adjusted balance Cash balance according to company's records Add Note collected by bank, including $160.00 interest Add: Error in recording July 23 deposit V Add: Error in recording Check No 627 Total additions Deductil Check returned because of insufficient funds Deduct: Bank service charges Total deductions Adjusted balance 27.70 X 00 00 00 7 2. Journalize the necessary entries (a.) that increase cash and (b.) that decrease cash. The accounts have not been closed. When required, enter amounts in dollars and cents. If an amount box does not require an entry, leave it blank. a. 2010 July 31 Cash -V Notes Receivable Interest Revenue Sales Accounts Payable b. July 31 Accounts Receivable Miscellaneous Expense Cash 000 0000 000 3. What is the amount of cash that should appear on the balance sheet as of July 31, 2010? 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. Treatment To correct

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