Question
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, 20Y0, 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 | $9,579.00 | ||
CASH RECEIPTS FOR MONTH OF JULY | 6,466.42 |
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 | $714.45 | ||||||
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 | 391.73 | 634 | 241.71 | ||||||
Total amount of checks issued in July | $8,389.42 |
BANK RECONCILIATION FOR PRECEDING MONTH:
Sunshine Interiors | ||||
Bank Reconciliation | ||||
June 30, 20Y0 | ||||
Cash balance according to bank statement | $9,423.70 | |||
Add: Deposit of June 30 not recorded by bank | $780.80 | |||
Deduct: Outstanding Check No. 580 | ($310.10) | |||
Outstanding Check No. 602 | (85.50) | |||
Outstanding Check No. 612 | (92.50) | |||
Outstanding Check No. 613 | (137.40) | |||
Total deductions | (625.50) | |||
Adjusted balance | $9,579.00 | |||
Cash balance according to company's records | $9,606.70 | |||
Deduct: Bank service charges | (27.70) | |||
Adjusted balance | $9,579.00 |
JULY BANK STATEMENT:
MEMBER FDIC | PAGE 1 | ||||||
AMERICAN NATIONAL BANK OF DETROIT | ACCOUNT NUMBER | ||||||
FROM 7/01/20Y0 | TO 7/31/20Y0 | ||||||
DETROIT, MI 48201-2500 (313) 933-8547 | BALANCE | 9,423.70 | |||||
9 | DEPOSITS | 6,096.35 | |||||
20 | WITHDRAWALS | 7,657.74 | |||||
SUNSHINE INTERIORS | 4 | OTHER DEBITS AND CREDITS | 3,749.00CR | ||||
NEW BALANCE | 11,611.31 |
CHECKS AND OTHER DEBITS | DEPOSITS | DATE | BALANCE | ||||
No. 580 | 310.10 | No. 612 | 92.50 | 780.80 | 07/01 | 9,801.90 | |
No. 602 | 85.50 | No. 614 | 243.50 | 569.50 | 07/03 | 10,042.40 | |
No. 615 | 350.10 | No. 616 | 279.90 | 701.80 | 07/06 | 10,114.20 | |
No. 617 | 395.50 | No. 618 | 435.40 | 819.24 | 07/11 | 10,102.54 | |
No. 619 | 320.10 | No. 620 | 238.87 | 580.70 | 07/13 | 10,124.27 | |
No. 621 | 309.50 | No. 624 | 707.01 | MS 4,000.00 | 07/14 | 13,107.76 | |
No. 625 | 158.63 | No. 626 | 550.03 | MS 160.00 | 07/14 | 12,559.10 | |
No. 627 | 319.73 | No. 629 | 329.90 | 600.10 | 07/17 | 12,509.57 | |
No. 630 | 882.80 | No. 631 | 1,081.56 | NSF 375.00 | 07/20 | 10,170.21 | |
No. 632 | 325.40 | No. 634 | 241.71 | 701.26 | 07/21 | 10,304.36 | |
741.45 | 07/24 | 11,045.81 | |||||
601.50 | 07/28 | 11,647.31 | |||||
SC | 36.00 | 07/31 | 11,611.31 |
EC ERROR CORRECTION | OD OVERDRAFT | ||||||
MS MISCELLANEOUS | PS PAYMENT STOPPED | ||||||
NSF NOT SUFFICIENT FUNDS | SC SERVICE CHARGE | ||||||
THE RECONCILEMENT OF THIS STATEMENT WITH YOUR RECORDS IS ESSENTIAL. | |||||||
ANY ERROR OR EXCEPTION SHOULD BE REPORTED IMMEDIATELY. |
Required:
Prepare a bank reconciliation as of July 31, 20Y0. 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, 20Y0 | ||
Cash balance according to bank statement | $____________ | |
Add: Deposit in transit on July 31 | 1177.87 | |
Deduct: Outstanding Check no. 613 | $137.40 | |
Deduct: Outstanding Check No. 628 | 837.70 | |
Deduct: Outstanding Check No. 633 | 310.08 | |
Total deductions | 1285.18 | |
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 | __________ | |
Add: Error in recording Check No. 627 | __________ | |
Total additions | ____________ | |
Deduct: Check returned because of insufficient funds | $375 | |
Deduct: Bank service charges | 36 | |
Total deductions | 411 | |
Adjusted balance | $____________ |
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. 20Y0 July 31 | Cash | __________ | |
Notes Receivable | 4000 | ||
Interest Revenue | 160 | ||
Sales | _________ | ||
Accounts Payable | _________ | ||
b. July 31 | Accounts Receivable | 375 | |
Miscellaneous Expense | 36 | ||
Cash | 411 |
3. What is the amount of cash that should appear on the balance sheet as of July 31, 20Y0? $______________
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