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Bank reconciliation

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 $$16,130$

Add: Outstanding Check No$.1067$ $$590$

Outstanding Check No$.1106460$

Outstanding Check No$.11101,010$

Outstanding Check No$.1113950$

Total additions $3,010$

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

Adjusted balance $$12,540$

Cash balance according to company$$s records $$9,840$

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 $$900$

Error in recording June $17$ deposit of $$7,250$ as $$2,7504,500$

Total deductions $(5,400)$

Adjusted balance $$10,760$

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

blank $-$ Select $-$

$$-$ Select $-$

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$-$ Select $-$

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$-$ Select $-$

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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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