Bank Reconciliation The following bank reconciliation was prepared as of June 30, 20Y7: Poway Co. Bank Reconciliation For the Month Ended June 30, 20Y7 Cash balance according to bank statement $16,185 Adjustments: Outstanding Check No.1067 $575 Outstanding Check No.1106 470 Outstanding Check No.1110 1,050 Outstanding Check No.1113 910 Deposit of June 30 not recorded by bank (6,600) Total adjustments (3,595) Adjusted balance $12,590 Cash balance according to companys records $8,985 Adjustments: Proceeds of note collected by bank: Face value $6,000 Proceeds of note collected by bank: Interest 300 Service charges 15 Check returned because of insufficient funds (890) Error in recording June 17 deposit of $7,150 as $1,750 (5,400) Total adjustments 25 Adjusted balance $9,010 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 b. Prepare a corrected bank reconciliation. Poway Co. Bank Reconciliation June 30, 20Y7 Cash balance according to bank statement $ Adjustments: $ Total adjustments Adjusted balance $ Cash balance according to company's records $ Adjustments: $ Total adjustments Adjusted balance $

Bank Reconciliation

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

Poway Co.
Bank Reconciliation
For the Month Ended June 30, 20Y7
Cash balance according to bank statement					$16,185
Adjustments:
Outstanding Check No.1067			$575
Outstanding Check No.1106			470
Outstanding Check No.1110			1,050
Outstanding Check No.1113			910
Deposit of June 30 not recorded by bank			(6,600)
Total adjustments					(3,595)
Adjusted balance					$12,590
Cash balance according to companys records					$8,985
Adjustments:
Proceeds of note collected by bank: Face value			$6,000
Proceeds of note collected by bank: Interest			300
Service charges			15
Check returned because of insufficient funds			(890)
Error in recording June 17 deposit of $7,150 as $1,750			(5,400)
Total adjustments					25
Adjusted balance					$9,010

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

b. Prepare a corrected bank reconciliation.

Poway Co.
Bank Reconciliation
June 30, 20Y7
Cash balance according to bank statement		$
Adjustments:
	$
Total adjustments
Adjusted balance		$
Cash balance according to company's records		$
Adjustments:
	$
Total adjustments
Adjusted balance		$