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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, 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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