Sunshine Interiors deposits all cash receipts each Wednesday and Friday in a night depository, after banking hours.

Question:

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:

Sunshine Interiors deposits all cash receipts each Wednesday and Friday

Checks written:
Number and amount of each check issued in July:

Bank reconciliation for preceding month:
Beeler Furniture Company
Bank Reconciliation
May 31, 20Y2

June bank statement:

Instructions:

1. Prepare a bank reconciliation as of June 30, 20Y2. 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.
2. Journalize the necessary entries.
3. What is the amount of cash that should appear on the balance sheet as of June 30, 20Y2?
4. Assume that a canceled check for $390 has been incorrectly recorded by the bank as $930. Briefly explain how the error would be included in a bank reconciliation and how it should be corrected.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...