Sunshine Interiors deposits all cash receipts each Wednesday and Friday in a night depository, after banking hours. The data required to reconcile the bank statement as of July 31, 20Y0, have been taken from various documents and records and are reproduced as follows. The sources of the data are printed in capital letters. All checks were written for payments on account.

CASH ACCOUNT:
Balance as of July 1			$9,578.00
CASH RECEIPTS FOR MONTH OF JULY			6,465.42

DUPLICATE DEPOSIT TICKETS:
Date and amount of each deposit in July:
Date		Amount		Date		Amount		Date		Amount
July 2		$569.50		July 12		$580.70		July 23		$713.45
5		701.80		16		600.10		26		601.50
9		819.24		19		701.26		31		1,177.87

CHECKS WRITTEN:
Number and amount of each check issued in July:
Check No.		Amount		Check No.		Amount		Check No.		Amount
614		$243.50		621		$309.50		628		$837.70
615		350.10		622		Void		629		329.90
616		279.90		623		Void		630		882.80
617		395.50		624		707.01		631		1,081.56
618		435.40		625		158.63		632		325.40
619		320.10		626		550.03		633		310.08
620		238.87		627		391.73		634		241.71
Total amount of checks issued in July										$8,389.42

BANK RECONCILIATION FOR PRECEDING MONTH:

Sunshine Interiors
Bank Reconciliation
June 30, 20Y0
Cash balance according to bank statement				$9,422.70
Add: Deposit of June 30 not recorded by bank				$780.80
Deduct: Outstanding Check No. 580		($310.10)
Outstanding Check No. 602		(85.50)
Outstanding Check No. 612		(92.50)
Outstanding Check No. 613		(137.40)
Total deductions				(625.50)
Adjusted balance				$9,578.00
Cash balance according to company's records				$9,605.70
Deduct: Bank service charges				(27.70)
Adjusted balance				$9,578.00

JULY BANK STATEMENT:

MEMBER FDIC							PAGE 1
AMERICAN NATIONAL BANK OF DETROIT						ACCOUNT NUMBER
						FROM 7/01/20Y0	TO 7/31/20Y0
DETROIT, MI 48201-2500 (313) 933-8547						BALANCE	9,422.70
					9	DEPOSITS	6,086.35
					20	WITHDRAWALS	7,657.74
SUNSHINE INTERIORS					4	OTHER DEBITS AND CREDITS	3,749.00CR
						NEW BALANCE	11,600.31

CHECKS AND OTHER DEBITS					DEPOSITS	DATE	BALANCE
No. 580	310.10	No. 612	92.50		780.80	07/01	9,800.90
No. 602	85.50	No. 614	243.50		569.50	07/03	10,041.40
No. 615	350.10	No. 616	279.90		701.80	07/06	10,113.20
No. 617	395.50	No. 618	435.40		819.24	07/11	10,101.54
No. 619	320.10	No. 620	238.87		580.70	07/13	10,123.27
No. 621	309.50	No. 624	707.01		MS 4,000.00	07/14	13,106.76
No. 625	158.63	No. 626	550.03		MS 160.00	07/14	12,558.10
No. 627	319.73	No. 629	329.90		600.10	07/17	12,508.57
No. 630	882.80	No. 631	1,081.56	NSF 375.00		07/20	10,169.21
No. 632	325.40	No. 634	241.71		701.26	07/21	10,303.36
					731.45	07/24	11,034.81
					601.50	07/28	11,636.31
		SC	36.00			07/31	11,600.31

EC ERROR CORRECTION					OD OVERDRAFT
MS MISCELLANEOUS					PS PAYMENT STOPPED
NSF NOT SUFFICIENT FUNDS					SC SERVICE CHARGE
THE RECONCILEMENT OF THIS STATEMENT WITH YOUR RECORDS IS ESSENTIAL.
ANY ERROR OR EXCEPTION SHOULD BE REPORTED IMMEDIATELY.

Required:

1. Prepare a bank reconciliation as of July 31, 20Y0. If errors in recording deposits or checks are discovered, assume that the errors were made by the company. Assume that all deposits are from cash sales. All checks are written to satisfy accounts payable. When required, enter amounts in dollars and cents.

Sunshine Interiors Bank Reconciliation July 31, 20Y0

Cash balance according to bank statement		$fill in the blank 1c1cdf010046ff5_1
Add: Deposit in transit on July 31Add: Error in recording Check No. 627Add: Error in recording July 23 depositDeduct: Deposit in transit on July 31Deduct: Interest on note collected		- Select -
Add: Check returned because of insufficient fundsAdd: Outstanding Check no. 613Deduct: Error in recording July 23 depositDeduct: Interest on note collectedDeduct: Outstanding Check no. 613	$- Select -
Add: Check returned because of insufficient fundsAdd: Service chargesDeduct: Deposit of July 31, not recorded by bankDeduct: Error in recording July 23 depositDeduct: Outstanding Check No. 628	- Select -
Add: Check returned because of insufficient fundsAdd: Error in July 23 depositDeduct: Error in recording Check No. 627Deduct: Service chargesDeduct: Outstanding Check No. 633	- Select -
Total deductions		fill in the blank 1c1cdf010046ff5_10
Adjusted balance		$fill in the blank 1c1cdf010046ff5_11
Cash balance according to company's records		$fill in the blank 1c1cdf010046ff5_12
Add: Check returned because of insufficient fundsAdd: Note collected by bank, including $160.00 interestDeduct: Service chargesDeduct: Outstanding Check No. 628Deduct: Outstanding Check No. 633	$- Select -
Add: Check returned because of insufficient fundsAdd: Deposit of July 31, not recorded by bankAdd: Error in recording July 23 depositDeduct: Outstanding Check No. 613Deduct: Outstanding Check No. 633	- Select -
Add: Error in recording Check No. 627Add: Outstanding Check No. 613Add: Outstanding Check No. 633Add: Service chargesDeduct: Deposit of July 31, not recorded by bank	- Select -
Total additions		fill in the blank 1c1cdf010046ff5_19
Add: Check returned because of insufficient fundsAdd: Deposit of July 31, not recorded by bankDeduct: Check returned because of insufficient fundsDeduct: Error in recording Check No. 627Deduct: Error in recording July 23 depositDeduct: Interest on note collected	$- Select -
Add: Error in recording Check No. 627Add: Error in recording July 23 depositAdd: Interest on note collectedDeduct: Bank service chargesDeduct: Deposit of July 31, not recorded by bank	- Select -
Total deductions		fill in the blank 1c1cdf010046ff5_24
Adjusted balance		$fill in the blank 1c1cdf010046ff5_25

2. Journalize the necessary entries (a.) that increase cash and (b.) that decrease cash. The accounts have not been closed. When required, enter amounts in dollars and cents. If an amount box does not require an entry, leave it blank.

a. 20Y0 July 31	Accounts ReceivableCashInterest RevenueNotes ReceivableSales	- Select -	- Select -
	Accounts ReceivableCashInterest PayablePetty CashNotes Receivable	- Select -	- Select -
	Accounts ReceivableCashInterest ExpenseInterest RevenueUnearned Interest	- Select -	- Select -
	Accounts ReceivableCashInterest PayableInterest ReceivableSales	- Select -	- Select -
	Accounts PayableAccounts ReceivableCashInterest ExpenseCash Short and Over	- Select -	- Select -
b. July 31	Accounts PayableAccounts ReceivableCash Short and OverPetty CashInterest Receivable	- Select -	- Select -
	Accounts PayableMiscellaneous ExpenseMiscellaneous Administrative RevenuePetty Cash	- Select -	- Select -
	Accounts PayableAccounts ReceivableCashMiscellaneous RevenueCash Short and Over	- Select -	- Select -

3. What is the amount of cash that should appear on the balance sheet as of July 31, 20Y0? $fill in the blank e04e43fbafb5ff0_1

4. Assume that a canceled check for $180 has been incorrectly recorded by the bank as $1,800. Select how the error would be included in a bank reconciliation and how it should be corrected.

Treatment	Not included in a bank reconciliationAddition to cash per depositor's recordsDeduction from cash per bank statementDeduction from cash per depositor's recordsAddition to cash per bank statement
To correct	Journalize a correcting entry adding $1,800 to cashJournalize an entry deducting $1,620 from cashRequest that the bank correct the errorJournalize an entry adding $1,620 to cashJournalize an entry deducting $1,800 from cash