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On June 30 , Sarasota Corporation showed a cash balance on their books of $10,788. The bank statement from the company's bank showed a month
On June 30 , Sarasota Corporation showed a cash balance on their books of $10,788. The bank statement from the company's bank showed a month end balance of $14,146. On reviewing the bank statement, the following items were discovered: 1. A deposit made on June 29 for $1,600 did not appear on the bank statement. 2. Cheques written in the month of June but that did not appear on the bank statement were as follows: 3. The bank credited Sarasota's account for $320 on June 19. This deposit did not belong to Sarasota, but belonged to another company and was posted in error. 4. The bank statement showed receipt of a wire transfer of $2,160 in payment of a note receivable, as well as $120 interest. 5. According to the bank statement, $27 was deducted from Sarasota's account for service charges. 6. The bank cleared cheque \# 152 for $950; however, the cheque was recorded in Sarasota's records at $930. Research showed the bank was correct, and the cheque was recorded incorrectly in Sarasota's books. The cheque was written in payment of advertising. 7. A cheque for $590 from one of Sarasota's customers was rejected by the bank due to insufficient funds (NSF). (a) Prepare a bank reconciliation to the correct cash balance at June 30 . (List items that increase balance as per bank and books first.)
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