Bank Reconciliation and Entries Sunshine Interiors deposits all cash receipts ea

Question

Bank Reconciliation and Entries

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.

BANK RECONCILIATION FOR PRECEDING MONTH:

Click here to see 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. 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.

CASH ACCOUNT: Balance as of July 1 $ 9,578.00 CASH RECEIPTS FOR MONTH OF JULY 6,465.42 Bank Reconcillation and Entries 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 varlous deduments and records and are reprodaced as follows. The sources of the data are printed in capital letters. All checks were writen for payments on account CASH ACCOUNT Balance as of July I 9,578.00 OUPLICATE DEPOSET TICKETS Date and amount of each deposit in Jly Date Amount Date sses,50 701.80 580.70 600.10 01.26 July 12 July 23 26 31 713.45 601.30 1778 19 CHECKS WRITTEN Nuhber and amount of each check issued in Juy AmountCheck Ne Amount Check No. 243.50 50.10 279.90 621 622 623 309.50 837.70 329.90 82.80 629 616

Explanation / Answer

3. What is the amount of Cash that should appear on the balance sheet as of July 31?

$11494

4

BANK RECONCILIATION FOR PRECEDING MONTH: Sunshine Interiors Bank Reconciliation July 30, 20Y0 Cash balance according to bank statement 11601.41 Adjustments: Deposit of June 30 not recorded by bank 1177.87 Outstanding Check No. 613 137.5 Outstanding Check No. 625 837.7 Outstanding Check No. 633 310.08 Total adjustments -107.41 Adjusted balance 11494 Cash balance according to company's records 7664 Adjustments: Principalof Notes Collected 4000 Interest 160 Add Error in recoding july 23 Depsot 18 Add Error in recoding Check no 627 63 Less Cehck returned 375 Less Service charge 36 Total Adjsutment 3830 Adjusted Balance 11494

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