Bank reconciliation Bank Reconciliation

For the Month Ended June $30,20Y7$

a$.$

The following bank reconciliation was prepared as of June $30,20$Y$7$:

Poway Co$.$

Bank Reconciliation

For the Month Ended June $30,20$Y$7$

Line Item Description Amount Amount

Cash balance according to bank statement $$16,105$

Add: Outstanding Check No$.1067$ $$595$

Outstanding Check No$.1106450$

Outstanding Check No$.11101,030$

Outstanding Check No$.1113930$

Total additions $3,005$

Deduct: Deposit of June $30$ not recorded by bank $(6,600)$

Adjusted balance $$12,510$

Cash balance according to company$$s records $$9,770$

Add: Proceeds of note collected by bank: Face value $$6,000$

Proceeds of note collected by bank: Interest $300$

Service charges $10$

Total additions $6,310$

Deduct: Check returned because of insufficient funds $$860$

Error in recording June $17$ deposit of $$8,350$ as $$3,8504,500$

Total deductions $(5,360)$

Adjusted balance $$10,720$

Question Content Area

a$.$

Identify the errors in the following bank reconciliation:

Item Correct

Heading

Outstanding checks

Deposit of June $30$

Service charges

Error in June $17$ deposit

Adjusted balance per the bank

Question Content Area

b$.$ Prepare a corrected bank reconciliation.

Poway Co$.$

Bank Reconciliation

June $30,20$Y$7$

Line Item Description Amount Amount

Cash balance according to bank statement $Cash balance according to bank statement

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$$-$ Select $-$

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Total deductions blank Total deductions

Adjusted balance $Adjusted balance

Cash balance according to company's records $Cash balance according to company's records

$$-$ Select $-$

$-$ Select $-$

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Total additions blank Total additions

$$-$ Select $-$

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$-$ Select $-$

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Total deductions blank Total deductions

Adjusted balance $Adjusted balance

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