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Sunshine Interiors deposits all cash receipts each Wednesday and Friday in a nig

ID: 2447921 • Letter: S

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 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.

DUPLICATE DEPOSIT TICKETS:

Date and amount of each deposit in July:

Date

Amount

Date

Amount

Date

Amount

CHECKS WRITTEN: Number and amount of each check issued in July:

Check No.

Amount

Check No.

Amount

Check No.

Amount

Total amount of checks issued in July: $8,379.42

JULY BANK STATEMENT:

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

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 service charges 27.70 Adjusted balance $ 9,578.00

Explanation / Answer

Sunshine Interiors deposits all cash receipts each Wednesday and Friday in a nig

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