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:

	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. July Bank Statement: MEMBER FDIC PAGE 1. AMERICAN NATIONAL BANK ACCOUNT NUMBER OF DETROIT FROM 7/01/2016 TO 7/31/2016 DETROIT, MI 48201-2500 (313) 933-8547 BALANCE 9,422.80 9 DEPOSITS 6,086.35 20 WDRWLS 7,656.74 SUNSHINE INTERIORS 4 OTHER DEBITS AND CREDITS 3,749.00CR NEW BALANCE 11,601.41 * ----- CHECKS AND OTHER DEBITS * DEPOSITS * DATE * BALANCE * No. 580 3.10.10 No. 612 92.50 780.80 07/01 9,801.00 No. 602 85.50 No. 614 243.50 569.50 07/03 10,041.50 No. 615 350.10 No. 616 279.90 701.80 07/06 10,113.30 No. 617 395.50 No. 618 455.40 819.24 07/11 10,101.64 No. 619 320. 10 No. 620 238.87 580.70 07/13 10,123.37 No. 621 309.50 No. 624 707.01 MS 4,000.00 07/14 13,106.86 No. 625 158.63 No. 626 550.03 MS. 160.00 07/14 12.558.20 No. 627 318.73 No. 629 329.90 600.10 07/17 12,509.67 No. 630 882.80 No. 631 1,081.58 NSF 375.00 07/20 10,170.31 No. 632 325.40 No. 654 241.71 701.26 07/21 10,304.46 731.45 07/24 11,035.91 601.50 07/28 11,637.41 SC 36.00 07/31 11,601.41 EC - ERROR CORRECTION OD - OWERDRAFT MS - MISCELLANEOUS PS - PAYMENT STOPPED NSF - NOT SUFFICIENT FUNDS SC - SERVICE CHARGE