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:

Line Item Description	Amount
Balance as of July 1	$9,580.00
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
July 5	701.80	July 16	600.10	July 26	601.50
July 9	819.24	July 19	701.26	July 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	371.73	634	241.71
Total amount of checks ssued in July					$8,369.42

BANK RECONCILIATION FOR PRECEDING MONTH:

Sunshine Interiors Bank Reconciliation June 30, 20Y0

Cash balance according to bank statement		$9,424.70
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		$9,580.00
Cash balance according to company's records		$9,607.70
Deduct: Bank service charges		(27.70)
Adjusted balance		$9,580.00

JULY BANK STATEMENT:

MEMBER FDIC PAGE 1 AMERICAN NATIONAL BANK OF DETROIT ACCOUNT NUMBER FROM 7/01/20Y0 TO 7/31/20Y0

Line Item Description	Number	Line Item Description	Amount
DETROIT, MI 48201-2500 (313) 933-8547		BALANCE	9,424.70
	9	DEPOSITS	6,086.35
	20	WITHDRAWALS	7,655.74
SUNSHINE INTERIORS	4	OTHER DEBITS AND CREDITS	3,754.00CR
		NEW BALANCE	11,609.31

CHECKS	OTHER DEBITS	CHECKS	OTHER DEBITS	NSF Amount	DEPOSITS	DATE	BALANCE
No. 580	310.10	No. 612	92.50		780.80	07/01	9,802.90
No. 602	85.50	No. 614	243.50		569.50	07/03	10,043.40
No. 615	350.10	No. 616	279.90		701.80	07/06	10,115.20
No. 617	395.50	No. 618	435.40		819.24	07/11	10,103.54
No. 619	320.10	No. 620	238.87		580.70	07/13	10,125.27
No. 621	309.50	No. 624	707.01		MS 4,000.00	07/14	13,108.76
No. 625	158.63	No. 626	550.03		MS 160.00	07/14	12,560.10
No. 627	317.73	No. 629	329.90		600.10	07/17	12,512.57
No. 630	882.80	No. 631	1,081.56	NSF 370.00		07/20	10,178.21
No. 632	325.40	No. 634	241.71		701.26	07/21	10,312.36
					731.45	07/24	11,043.81
					601.50	07/28	11,645.31
		SC	36.00			07/31	11,609.31

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:

Question Content Area

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. Round your answers to two decimal places.

Sunshine Interiors Bank Reconciliation July 31, 20Y0

Line Item Description	Amount	Amount
Cash balance according to bank statement		$
Add: Deposit in transit on July 31		$1,177.87
Deduct:Outstanding Check no. 613	$137.40
Deduct: Outstanding Check No. 628	$837.70
Deduct: Outstanding Check No. 633	$310.08
Total deductions		1285.18
Adjusted balance		$
Cash balance according to company's records		$
Add: Note collected by bank, including $160.00 interest	$4,160.00
Add: Error in recording July 23 deposit	$18.00
Add: Error in recording Check No. 627	$
Total additions		$
Deduct: Check returned because of insufficient funds	$
Deduct: Bank service charges	$36.00
Total deductions		$
Adjusted balance		$

2. Journalize the necessary entries (a.) that increase cash and (b.) that decrease cash. The accounts have not been closed. If an amount box does not require an entry, leave it blank. Round your answers to two decimal places.

Date	Account	Debit	Credit
a. 20Y0 July 31	Cash
	Notes Receivable		$4,000.00
	Interest Revenue		$160.00
	Sales		$18.00
	Accounts Payable
b. July 31	Accounts Receivable
	Miscellaneous Expense	$36.00
	Cash

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