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 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.

BANK RECONCILIATION FOR PRECEDING MONTH (DATED JUNE 30):
Cash balance according to bank statement		$9,422.80
Add deposit of June 30, not recorded by bank		780.80
		$10,203.60
Deduct outstanding checks:
No. 580	$310.10
No. 602	85.50
No. 612	92.50
No. 613	137.50	625.60
Adjusted balance		$ 9,578.00
Cash balance according to companys records		$ 9,605.70
Deduct service charges		27.70
Adjusted balance		$ 9,578.00

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	381.73		634	241.71

Total amount of checks issued in July: $8,379.42

JULY BANK STATEMENT:

Click here to view.

Required:

1.

Prepare a bank reconciliation as of July 31. 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. Refer to the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. (Note:Deduct, Add, No. or colons (:) will automatically appear if required.)

2.

Journalize the necessary entries. The accounts have not been closed. Refer to the Chart of Accounts for exact wording of account titles.

3.

What is the amount of Cash that should appear on the balance sheet as of July 31?

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.

Labels and ammounts:

Labels
Cash and cash equivalents
Outstanding checks
Proceeds of note collected by bank
Amount Descriptions
Adjusted balance
Check returned because of insufficient funds
Deposit of July (insert day), not recorded by bank
Error in recording Check No. (insert check number)
Error in recording July (insert day) deposit
Interest
Principal
Service charges
(Check numbers are valid Amount Descriptions;
No. will appear automatically)

1. Prepare a bank reconciliation as of July 31. 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. Refer to the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. (Note: Deduct, Add, No. or colons (:) will automatically appear if required. "Whenever there is more than one adjusting item in the bank portion of the reconciliation or the general ledger portion of the bank reconciliation, enter in the order presented in the instructions.)

SUNSHINE INTERIORS

Bank Reconciliation

July 31, 2016

1	Cash balance according to bank statement
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10	Cash balance according to companys records
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