Sunshine Interiors deposits allcashreceipts each Wednesday and Friday in a night depository, after banking hours. The data required to reconcile thebank statements 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 company's records			$9,605.70
Deduct bank 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

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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. When required, enter amounts in dollars and cents.

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. For a compound transaction, if an amount box does not require an entry, leave it blank.

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.

Treatment	-Not included in a bank reconciliation -Addition to cash per depositor's records -Deduction from cash per bank statement -Deduction from cash per depositor's records -Addition to cash per bank statement
To correct	-Journalize a correcting entry adding $1,800 to cash -Journalize an entry deducting $1,620 from cash -Request that the bank correct the error -Journalize an entry adding $1,620 to cash -Journalize an entry deducting $1,800 from cash