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 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 company's records $9,605 70 Deduct bank 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 Click here to see JUNE BANK STATEMENT 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 When required, enter amounts in dollars and cents Sunshine Interiors Bank Reconciliation July 31, 20Y5 Cash balance according to bank statement $fill in the blank e4955005e066fa7 1 Add deposit of July 31, not recorded by bankAdd error in recording check No 627Add error in recording July 23 depositAdd principal of note collectedAdd interest on note collectedAdd deposit of July 31, not recorded by bank Add deposit of July 31, not recorded by bank Deduct deposit of July 31, not recorded by bankDeduct error in recording July 23 depositDeduct check returned because of insufficient fundsDeduct check no 613Deduct interest on note collectedDeduct check no 613 $Deduct check no 613 Deduct deposit of July 31, not recorded by bankDeduct error in recording July 23 depositDeduct check returned because of insufficient fundsDeduct check no 628Deduct bank service chargesDeduct check no 628 Deduct check no 628 Deduct error in July 23 depositDeduct error in recording check No 627Deduct check returned because of insufficient fundsDeduct check no 633Deduct bank service chargesDeduct check no 633 Deduct check no 633 Deduct check no 633 Adjusted balance $fill in the blank e4955005e066fa7 11 Cash balance according to company's records $fill in the blank e4955005e066fa7 12 Add check returned because of insufficient fundsAdd check no 628Add check no 633Add bank service chargesAdd note and interest collected by bank $ Select Add deposit of July 31, not recorded by bankAdd error in recording July 23 depositAdd check returned because of insufficient fundsAdd check no 613Add check no 633 Select Add deposit of July 31, not recorded by bankAdd error in recording check No 627Add check no 613Add check no 633Add bank service charges Select Select Deduct deposit of July 31, not recorded by bankDeduct error in recording check No 627Deduct error in recording July 23 depositDeduct check returned because of insufficient fundsDeduct interest on note collected $ Select Deduct deposit of July 31, not recorded by bankDeduct error in recording check No 627Deduct error in recording July 23 depositDeduct interest on note collectedDeduct bank service charges Select Select Adjusted balance $fill in the blank e4955005e066fa7 25 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 For a compound transaction, if an amount box does not require an entry, leave it blank a 20Y5 July 31 Accounts ReceivableCashInterest RevenueNotes ReceivableSales Select Select Accounts ReceivableCashInterest PayablePetty CashNotes Receivable Select Select Accounts ReceivableCashInterest ExpenseInterest RevenueUnearned Interest Select Select Accounts ReceivableCashInterest PayableInterest ReceivableSales Select Select Accounts PayableAccounts ReceivableCashInterest ExpenseCash Short and Over Select Select b July 31 Accounts PayableAccounts ReceivableCash Short or OverPetty CashInterest Receivable Select Select Accounts PayableCash Over and ShortMiscellaneous ExpenseMiscellaneous Administrative RevenuePetty Cash Select Select Accounts PayableAccounts ReceivableCashMiscellaneous RevenueCash Short and Over Select Select 3 What is the amount of Cash that should appear on the balance sheet as of July 31 $fill in the blank 5521b0fe3064f91 1 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 Not included in a bank reconciliationAddition to cash per depositor's recordsDeduction from cash per bank statementDeduction from cash per depositor's recordsAddition to cash per bank statement To correct Journalize a correcting entry adding $1,800 to cashJournalize an entry deducting $1,620 from cashRequest that the bank correct the errorJournalize an entry adding $1,620 to cashJournalize an entry deducting $1,800 from cash Check My Work

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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

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 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 company's records		$9,605.70
Deduct bank 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

Click here to see JUNE BANK STATEMENT.

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. When required, enter amounts in dollars and cents.

Sunshine Interiors Bank Reconciliation July 31, 20Y5
Cash balance according to bank statement		$fill in the blank e4955005e066fa7_1
Add deposit of July 31, not recorded by bankAdd error in recording check No. 627Add error in recording July 23 depositAdd principal of note collectedAdd interest on note collectedAdd deposit of July 31, not recorded by bank		Add deposit of July 31, not recorded by bank
Deduct deposit of July 31, not recorded by bankDeduct error in recording July 23 depositDeduct check returned because of insufficient fundsDeduct check no. 613Deduct interest on note collectedDeduct check no. 613	$Deduct check no. 613
Deduct deposit of July 31, not recorded by bankDeduct error in recording July 23 depositDeduct check returned because of insufficient fundsDeduct check no. 628Deduct bank service chargesDeduct check no. 628	Deduct check no. 628
Deduct error in July 23 depositDeduct error in recording check No. 627Deduct check returned because of insufficient fundsDeduct check no. 633Deduct bank service chargesDeduct check no. 633	Deduct check no. 633	Deduct check no. 633
Adjusted balance		$fill in the blank e4955005e066fa7_11

Cash balance according to company's records		$fill in the blank e4955005e066fa7_12
Add check returned because of insufficient fundsAdd check no. 628Add check no. 633Add bank service chargesAdd note and interest collected by bank	$- Select -
Add deposit of July 31, not recorded by bankAdd error in recording July 23 depositAdd check returned because of insufficient fundsAdd check no. 613Add check no. 633	- Select -
Add deposit of July 31, not recorded by bankAdd error in recording check No. 627Add check no. 613Add check no. 633Add bank service charges	- Select -	- Select -
Deduct deposit of July 31, not recorded by bankDeduct error in recording check No. 627Deduct error in recording July 23 depositDeduct check returned because of insufficient fundsDeduct interest on note collected	$- Select -
Deduct deposit of July 31, not recorded by bankDeduct error in recording check No. 627Deduct error in recording July 23 depositDeduct interest on note collectedDeduct bank service charges	- Select -	- Select -
Adjusted balance		$fill in the blank e4955005e066fa7_25

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. For a compound transaction, if an amount box does not require an entry, leave it blank.

a. 20Y5 July 31	Accounts ReceivableCashInterest RevenueNotes ReceivableSales	- Select -	- Select -
	Accounts ReceivableCashInterest PayablePetty CashNotes Receivable	- Select -	- Select -
	Accounts ReceivableCashInterest ExpenseInterest RevenueUnearned Interest	- Select -	- Select -
	Accounts ReceivableCashInterest PayableInterest ReceivableSales	- Select -	- Select -
	Accounts PayableAccounts ReceivableCashInterest ExpenseCash Short and Over	- Select -	- Select -
b. July 31	Accounts PayableAccounts ReceivableCash Short or OverPetty CashInterest Receivable	- Select -	- Select -
	Accounts PayableCash Over and ShortMiscellaneous ExpenseMiscellaneous Administrative RevenuePetty Cash	- Select -	- Select -
	Accounts PayableAccounts ReceivableCashMiscellaneous RevenueCash Short and Over	- Select -	- Select -

3. What is the amount of Cash that should appear on the balance sheet as of July 31? $fill in the blank 5521b0fe3064f91_1

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	Not included in a bank reconciliationAddition to cash per depositor's recordsDeduction from cash per bank statementDeduction from cash per depositor's recordsAddition to cash per bank statement
To correct	Journalize a correcting entry adding $1,800 to cashJournalize an entry deducting $1,620 from cashRequest that the bank correct the errorJournalize an entry adding $1,620 to cashJournalize an entry deducting $1,800 from cash

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