Bank reconciliation The following bank reconciliation was prepared as of June 30, 20Y7 Poway Co Bank Reconciliation For the Month Ended June 30, 20Y7 Line Item Description Amount Amount Cash balance according to bank statement $16,290 Add Outstanding Check No 1067 $590 Outstanding Check No 1106 480 Outstanding Check No 1110 1,080 Outstanding Check No 1113 940 Total additions 3,090 Deduct Deposit of June 30 not recorded by bank (6,500) Adjusted balance $12,880 Cash balance according to companys records $10,680 Add Proceeds of note collected by bank Face value $6,000 Proceeds of note collected by bank Interest 300 Service charges 20 Total additions 6,320 Deduct Check returned because of insufficient funds $860 Error in recording June 17 deposit of $7,350 as $3,750 3,600 Total deductions (4,460) Adjusted balance $12,540 Question Content Area a Identify the errors in the following bank reconciliation Item Correct Heading Correct as isShould be June 30, 20Y7Should be June 23, 20Y7Should be For the Month of JuneShould be June 30, 20Y7 Outstanding checks Correct as isShould be deducted from balance per company's recordsShould be added to balance per company's recordsShould be deducted from balance per bank statement Deposit of June 30 Correct as isShould be added to balance per bank statementShould be deducted from balance per company's recordsShould be added to balance per company's records Service charges Correct as isShould be deducted from balance per bank statementShould be added to balance per bank statementShould be deducted from balance per company's records Error in June 17 deposit Correct as isShould be added to balance per company's recordsShould be added to balance per bank statementShould be deducted from balance per bank statement Adjusted balance per the bank Correct as isDoes not equal the adjusted balance per companyEqual to the adjusted balance per companyEqual to the adjusted balance per bank statement Question Content Area b Prepare a corrected bank reconciliation Poway Co Bank Reconciliation June 30, 20Y7 Line Item Description Amount Amount Cash balance according to bank statement $Cash balance according to bank statement Add Deposit in transit on June 30Deduct Deposit in transit on June 30Outstanding Check No 1067Outstanding Check No 1106Outstanding Check No 1110 Select Check returned because of insufficient fundsDeposit of June 30, not recorded by bankService chargesAdd Outstanding Check No 1067Deduct Outstanding Check No 1067 $ Select Check returned because of insufficient fundsDeposit of June 30, not recorded by bankError in recording June 17 deposit as $3,750 instead of $7,350Proceeds of note collected by bank InterestOutstanding Check No 1106 Select Check returned because of insufficient fundsDeposit of June 30, not recorded by bankProceeds of note collected by bank Face valueProceeds of note collected by bank InterestOutstanding Check No 1110 Select Deposit of June 30, not recorded by bankProceeds of note collected by bank Face valueProceeds of note collected by bank InterestService chargesOutstanding Check No 1113 Select Total deductions Total deductions Adjusted balance $Adjusted balance Cash balance according to company's records $Cash balance according to company's records Add Note collected by bank, including $300 interestDeduct Note collected by bank, including $300 interestOutstanding Check No 1067Outstanding Check No 1106Outstanding Check No 1113 $ Select Add Note collected by bank, including $300 interestDeduct Note collected by bank, including $300 interestError in recording June 17 deposit as $3,750 instead of $7,350Outstanding Check No 1067Outstanding Check No 1106 Select Total additions Total additions Add Check returned because of insufficient fundsDeduct Check returned because of insufficient fundsOutstanding Check No 1067Outstanding Check No 1106Outstanding Check No 1110 $ Select Bank service chargesOutstanding Check No 1067Outstanding Check No 1106Outstanding Check No 1110Outstanding Check No 1113 Select Total deductions Total deductions Adjusted balance $Adjusted balance

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Bank reconciliation The following bank reconciliation was prepared as of June 30, 20Y7: Poway Co. Bank Reconciliation For the Month Ended June 30, 20Y7 Line

Bank reconciliation

The following bank reconciliation was prepared as of June 30, 20Y7:

**Poway Co. Bank Reconciliation For the Month Ended June 30, 20Y7**
Line Item Description	Amount	Amount
Cash balance according to bank statement		$16,290
Add: Outstanding Check No. 1067	$590
Outstanding Check No. 1106	480
Outstanding Check No. 1110	1,080
Outstanding Check No. 1113	940
Total additions		3,090
Deduct: Deposit of June 30 not recorded by bank		(6,500)
Adjusted balance		$12,880
Cash balance according to companys records		$10,680
Add: Proceeds of note collected by bank: Face value	$6,000
Proceeds of note collected by bank: Interest	300
Service charges	20
Total additions		6,320
Deduct: Check returned because of insufficient funds	$860
Error in recording June 17 deposit of $7,350 as $3,750	3,600
Total deductions		(4,460)
Adjusted balance		$12,540

Question Content Area

Identify the errors in the following bank reconciliation:

Item	Correct
Heading	Correct as isShould be June 30, 20Y7Should be June 23, 20Y7Should be For the Month of JuneShould be June 30, 20Y7
Outstanding checks	Correct as isShould be deducted from balance per company's recordsShould be added to balance per company's recordsShould be deducted from balance per bank statement
Deposit of June 30	Correct as isShould be added to balance per bank statementShould be deducted from balance per company's recordsShould be added to balance per company's records
Service charges	Correct as isShould be deducted from balance per bank statementShould be added to balance per bank statementShould be deducted from balance per company's records
Error in June 17 deposit	Correct as isShould be added to balance per company's recordsShould be added to balance per bank statementShould be deducted from balance per bank statement
Adjusted balance per the bank	Correct as isDoes not equal the adjusted balance per companyEqual to the adjusted balance per companyEqual to the adjusted balance per bank statement

Question Content Area

b. Prepare a corrected bank reconciliation.

Poway Co. Bank Reconciliation June 30, 20Y7
Line Item Description	Amount	Amount
Cash balance according to bank statement		$Cash balance according to bank statement
Add: Deposit in transit on June 30Deduct: Deposit in transit on June 30Outstanding Check No. 1067Outstanding Check No. 1106Outstanding Check No. 1110		- Select -
Check returned because of insufficient fundsDeposit of June 30, not recorded by bankService chargesAdd: Outstanding Check No. 1067Deduct: Outstanding Check No. 1067	$- Select -
Check returned because of insufficient fundsDeposit of June 30, not recorded by bankError in recording June 17 deposit as $3,750 instead of $7,350Proceeds of note collected by bank: InterestOutstanding Check No. 1106	- Select -
Check returned because of insufficient fundsDeposit of June 30, not recorded by bankProceeds of note collected by bank: Face valueProceeds of note collected by bank: InterestOutstanding Check No. 1110	- Select -
Deposit of June 30, not recorded by bankProceeds of note collected by bank: Face valueProceeds of note collected by bank: InterestService chargesOutstanding Check No. 1113	- Select -
Total deductions		Total deductions
Adjusted balance		$Adjusted balance
Cash balance according to company's records		$Cash balance according to company's records
Add: Note collected by bank, including $300 interestDeduct: Note collected by bank, including $300 interestOutstanding Check No. 1067Outstanding Check No. 1106Outstanding Check No. 1113	$- Select -
Add: Note collected by bank, including $300 interestDeduct: Note collected by bank, including $300 interestError in recording June 17 deposit as $3,750 instead of $7,350Outstanding Check No. 1067Outstanding Check No. 1106	- Select -
Total additions		Total additions
Add: Check returned because of insufficient fundsDeduct: Check returned because of insufficient fundsOutstanding Check No. 1067Outstanding Check No. 1106Outstanding Check No. 1110	$- Select -
Bank service chargesOutstanding Check No. 1067Outstanding Check No. 1106Outstanding Check No. 1110Outstanding Check No. 1113	- Select -
Total deductions		Total deductions
Adjusted balance		$Adjusted balance