Vintage 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.

JULY BANK STATEMENT:

Instructions
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.
2. Journalize the necessary entries. The accounts have not been closed.
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 $2,680 has been incorrectly recorded by the bank as $6,280. Briefly explain how the error would be included in a bank reconciliation and how it should becorrected.

Transcribed Image Text:

BANK RECONCILIATION FOR PRECEDING MONTH (DATED JUNE 30): Cash balance according to bank statement.......... Add deposit of June 30, not recorded by bank.... ._........ 9,422.80 780.80 $10,203.60 Deduct outstanding checks: No. 602 85.50 625.60 9,578.00 9,605.70 27.70 $9,578.00 2 Deduct service charges.. . . CASH ACCOUNT Balance as of July1 59,578.00 CHECKS WRITTEN Number and amount of each check issued in July: Amount Check No. Amount Check No. Amount 837.70 329.90 882.80 1,081.56 62.40 310.08 503.30 614 621 $309.50 Void Void 707.01 518.63 550.03 318.73 628 2 350.10 279.90 395.50 435.40 320.10 238.87 623 624 625 626 627 630 631 632 616 619 634 Total amount of checks issued in July $8,675.01 PAGE1 MEMBER FDIC ACCOUNT NUMBER FROM γ/01/20- BALANCE AMERICAN NATIONAL BANK OF DETROIT TO 7/31/20- 9.422.80 6,086.35 7,514.11 DETROIT, MI 48201-2500 (313)933-8547 9 DEPOSITS 20 WITHDRAWALS VINTAGE INTERIORS 4 OTHER DEBITS AND CREDITS 3,150.5OCR NEW BALANCE 13,145.54 * _____ CHECKS AND OTHER DEBIT8 *-DEPOSITS-*-DATE-*-BALANCE-◆ No.380 10.1O No.812 No.81 137.50 No 814 243.50 No.815 550.10 No.816 2 9.90 No.817 95.50 No.818 435.40 No.819 冒20.10 No.6 0 238.87 No.821 09.50 No.624 707.01 No.623 138.63 No.628350.03 No.827 518.73 No.629 29.90 No.830 882.80 No.631 1,081.58 N8F 225.40 No.832 62.40 No.855 10.08 07/01 07/03 07/06 92.50 780.80 589.50 01.80 819.24 580.70 M8 5,000.00 MB 400.00 600.10 9,801.00 9,989.50 10,061.30 10,049.64 10,07187 14,054.86 13,748.20 13,697.6Y 11,507.91 11,838.89 12,568.14 13,189.64 13,143.54 07/13 07/14 07/14 701.26 731.45 601.50 07/20 07/21 07/24 07/28 07/31 80 24.10 EC ERROR CORRECTION OD OVERDRAFT P8 PAYMENT STOPPED 8C SERVICE CHARGE NSF NOT SUFFICIENT FUNDS THE RECONGILEMENT OF THIS STATEMENT WITH YOUR RECORDS I8 ES8ENTEAT ANY ERROR OR EXCEPTION 8HOULD BE REPORTED IMMEDIATELY CASH RECEIPTS FOR MONTH OF JULY 6,230.10 DUPLICATE DEPOSIT TICKETS: Date and amount of each deposit in July: Date July 2 9 Amount Date Amount Date Amount $569.50 701.80 819.24 July 12 580.70 600.10 701.26 July 23 26 31 731.45 601.00 925.05