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 $9.579.00 6,465.42 CASH ACCOUNT Balance as of July 1 CASH RECEIPTS FOR MONTH OF JULY DUPLICATE DEPOSIT TICKETS: Date and amount of each deposit in July Date Amount Date Amount Date Amount July 2 July 12 $500.70 July 23 $213.45 $569.50 701.80 5 16 600.10 26 601.50 1,177.87 9 819.24 19 701.26 31 Check No. Amount CHECKS WRITTEN Number and amount of each check issued in July Check No. Amount Check No. Amount 614 $243.50 621 $309.50 615 350.10 622 Void 616 279.90 623 Void 628 $83770 329.90 629 630 617 395.50 624 707.01 631 882.80 1,081 56 325.40 618 435,40 625 158.63 632 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 1,081.56 618 435.40 625 158.63 632 325,40 619 320.10 626 550.03 633 310.08 634 241.71 $8,389.42 I 620 238.87 627 391.73 Total amount of checks issued in July BANK RECONCILIATION FOR PRECEDING MONTH: Sunshine Interiors Bank Reconciliation June 30, 20YO 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 Deduct: Bank service charges Adjusted balance $9,606.70 (27.70) $9,579.00 JULY BANK STATEMENT: PAGE 1 MEMBER FDIC 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 6,086.35 9 DEPOSITS SUNSHINE INTERIORS 20 WITHDRAWALS 4 OTHER DEBITS AND CREDITS NEW BALANCE DEPOSITS DATE 7,657.74 3,749.00CR 11,601.31 BALANCE 780.80 07/01 9,801.90 No. 580 No. 602 CHECKS AND OTHER DEBITS 310.10 No. 612 92.50 85.50 No. 614 243.50 350.10 No. 616 279.90 569.50 10,042.40 07/03 07/06 No. 615 701.80 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 No. 621 309.50 No. 624 707.01 MS 4,000.00 07/14 10,124.27 13,107.76 12,559.10 12,509.57 No. 625 158.63 No. 626 550.03 MS 160.00 07/14 No. 627 319.73 No. 629 329.90 600.10 07/17 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 CHECKS AND OTHER DEBITS DEPOSITS DATE BALANCE No. 580 310.10 No. 612 92.50 780.80 07/01 No. 602 85.50 No. 614 243.50 9,801.90 10,042.40 10,114.20 569.50 07/03 No. 615 350.10 No. 616 701.80 07/06 279.90 435.40 No. 617 395.50 No. 618 819.24 07/11 No. 619 320.10 No. 620 238,87 580.70 07/13 No. 621 309.50 No. 624 707.01 MS 4,000.00 07/14 No 625 158.63 No. 626 550.03 MS 160.00 07/14 07/17 No. 627 319.73 No. 629 329.90 600.10 10,102.54 10,124.27 13,107.76 12,559.10 12,509.57 10,170,21 10,304.36 11,035,81 11,63731 11,601 31 No. 630 882.80 No. 631 1,081 56 NSF 375.00 07/20 07/21 No. 632 701 26 No. 634 325.40 241.71 731.45 07/24 601.50 07/28 SC 36.00 05/31 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: 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, 2040 Cash balance according to bank statement Total deductions Adjusted balance Cash balance according to company's records I LIL DO Total additions Total deductions Adjusted balance 2. Joumalize the necessary entries (0) 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 Total deductions 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. 2010 July 31 b. July 31 I 3. What is the amount of cash that should appear on the balance sheet as of July 31, 2007 4. Assume that a canceled check for 5180 has been incorrectly recorded by the bank as $1,000 Select how the error would be included in a bank reconciliation and how it should be corrected Treatment To correct