Question
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
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 $16,240
Add: Outstanding Check No. 1067 $570
Outstanding Check No.1106 450
Outstanding Check No.1110 1,070
Outstanding Check No.1113 950
Total additions 3,040
Deduct: Deposit of June 30 not recorded by bank (6,600)
Adjusted balance $12,680
Cash balance according to companys records $8,860
Add: Proceeds of note collected by bank: Face value $7,000
Proceeds of note collected by bank: Interest 350
Service charges 20
Total additions 7,370
Deduct: Check returned because of insufficient funds $890
Error in recording June 17 deposit of $7,250 as $2,750 4,500
Total deductions (5,390)
Adjusted balance $10,840
a.
Identify the errors in the following bank reconciliation:
ItemCorrect
Heading
Outstanding checks
Deposit of June 30
Service charges
Error in June 17 deposit
Adjusted balance per the bank
b. Prepare a corrected bank reconciliation.
Poway Co.
Bank Reconciliation
June 30, 20Y7
Cash balance according to bank statement$
$
Total deductions
Adjusted balance$
Cash balance according to company's records$
$
Total additions
$
Total deductions
Adjusted balance$
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1st Edition
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