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. CASH ACCOUNT: Balance as of July 1 $9,577.00 CASH RECEIPTS FOR MONTH OF JULY 6,466.42 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 $714.45 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 1,081.56 618 435.40 625 158.63 632 325.40 619 320.10 626 550.03 633 310.08 620 238.87 627 371.73 634 241.71 Total amount of checks issued in July $8,369.42 BANK RECONCILIATION FOR PRECEDING MONTH: Sunshine Interiors Bank Reconciliation June 30, 20Y0 Cash balance according to bank statement $9,421.70 Add: Deposit of June 30 not recorded by bank $780.80 Deduct: Outstanding Check No. 580 ($310.10) Outstanding Check No. 602 (85.50) Outstanding Check No. 612 (92.50) Outstanding Check No. 613 (137.40) Total deductions (625.50) Adjusted balance $9,577.00 Cash balance according to company's records $9,604.70 Deduct: Bank service charges (27.70) Adjusted balance $9,577.00 JULY BANK STATEMENT: MEMBER FDIC PAGE 1 AMERICAN NATIONAL BANK OF DETROIT ACCOUNT NUMBER FROM 7/01/20Y0 TO 7/31/20Y0 DETROIT, MI 48201-2500 (313) 933-8547 BALANCE 9,421.70 9 DEPOSITS 6,096.35 20 WITHDRAWALS 7,655.74 SUNSHINE INTERIORS 4 OTHER DEBITS AND CREDITS 3,749.00CR NEW BALANCE 11,611.31 CHECKS AND OTHER DEBITS DEPOSITS DATE BALANCE No. 580 310.10 No. 612 92.50 780.80 07/01 9,799.90 No. 602 85.50 No. 614 243.50 569.50 07/03 10,040.40 No. 615 350.10 No. 616 279.90 701.80 07/06 10,112.20 No. 617 395.50 No. 618 435.40 819.24 07/11 10,100.54 No. 619 320.10 No. 620 238.87 580.70 07/13 10,122.27 No. 621 309.50 No. 624 707.01 MS 4,000.00 07/14 13,105.76 No. 625 158.63 No. 626 550.03 MS 160.00 07/14 12,557.10 No. 627 317.73 No. 629 329.90 600.10 07/17 12,509.57 No. 630 882.80 No. 631 1,081.56 NSF 375.00 07/20 10,170.21 No. 632 325.40 No. 634 241.71 701.26 07/21 10,304.36 741.45 07/24 11,045.81 601.50 07/28 11,647.31 SC 36.00 07/31 11,611.31 EC –– ERROR CORRECTION OD –– OVERDRAFT MS –– MISCELLANEOUS PS –– PAYMENT STOPPED NSF –– NOT SUFFICIENT FUNDS SC –– SERVICE CHARGE THE RECONCILEMENT OF THIS STATEMENT WITH YOUR RECORDS IS ESSENTIAL. ANY ERROR OR EXCEPTION SHOULD BE REPORTED IMMEDIATELY. Required: 1. Prepare a bank reconciliation as of July 31, 20Y0. 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.

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. CASH ACCOUNT: Balance as of July 1 $9,577.00 CASH RECEIPTS FOR MONTH OF JULY 6,466.42 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 $714.45 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 1,081.56 618 435.40 625 158.63 632 325.40 619 320.10 626 550.03 633 310.08 620 238.87 627 371.73 634 241.71 Total amount of checks issued in July $8,369.42 BANK RECONCILIATION FOR PRECEDING MONTH: Sunshine Interiors Bank Reconciliation June 30, 20Y0 Cash balance according to bank statement $9,421.70 Add: Deposit of June 30 not recorded by bank $780.80 Deduct: Outstanding Check No. 580 ($310.10) Outstanding Check No. 602 (85.50) Outstanding Check No. 612 (92.50) Outstanding Check No. 613 (137.40) Total deductions (625.50) Adjusted balance $9,577.00 Cash balance according to company's records $9,604.70 Deduct: Bank service charges (27.70) Adjusted balance $9,577.00 JULY BANK STATEMENT: MEMBER FDIC PAGE 1 AMERICAN NATIONAL BANK OF DETROIT ACCOUNT NUMBER FROM 7/01/20Y0 TO 7/31/20Y0 DETROIT, MI 48201-2500 (313) 933-8547 BALANCE 9,421.70 9 DEPOSITS 6,096.35 20 WITHDRAWALS 7,655.74 SUNSHINE INTERIORS 4 OTHER DEBITS AND CREDITS 3,749.00CR NEW BALANCE 11,611.31 CHECKS AND OTHER DEBITS DEPOSITS DATE BALANCE No. 580 310.10 No. 612 92.50 780.80 07/01 9,799.90 No. 602 85.50 No. 614 243.50 569.50 07/03 10,040.40 No. 615 350.10 No. 616 279.90 701.80 07/06 10,112.20 No. 617 395.50 No. 618 435.40 819.24 07/11 10,100.54 No. 619 320.10 No. 620 238.87 580.70 07/13 10,122.27 No. 621 309.50 No. 624 707.01 MS 4,000.00 07/14 13,105.76 No. 625 158.63 No. 626 550.03 MS 160.00 07/14 12,557.10 No. 627 317.73 No. 629 329.90 600.10 07/17 12,509.57 No. 630 882.80 No. 631 1,081.56 NSF 375.00 07/20 10,170.21 No. 632 325.40 No. 634 241.71 701.26 07/21 10,304.36 741.45 07/24 11,045.81 601.50 07/28 11,647.31 SC 36.00 07/31 11,611.31 EC –– ERROR CORRECTION OD –– OVERDRAFT MS –– MISCELLANEOUS PS –– PAYMENT STOPPED NSF –– NOT SUFFICIENT FUNDS SC –– SERVICE CHARGE THE RECONCILEMENT OF THIS STATEMENT WITH YOUR RECORDS IS ESSENTIAL. ANY ERROR OR EXCEPTION SHOULD BE REPORTED IMMEDIATELY. Required: 1. Prepare a bank reconciliation as of July 31, 20Y0. 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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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.

CASH ACCOUNT:
Balance as of July 1			$9,577.00
CASH RECEIPTS FOR MONTH OF JULY			6,466.42

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	$714.45
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		371.73	634	241.71
Total amount of checks issued in July	$8,369.42

BANK RECONCILIATION FOR PRECEDING MONTH:

Sunshine Interiors
Bank Reconciliation
June 30, 20Y0
Cash balance according to bank statement		$9,421.70
Add: Deposit of June 30 not recorded by bank		$780.80
Deduct: Outstanding Check No. 580	($310.10)
Outstanding Check No. 602	(85.50)
Outstanding Check No. 612	(92.50)
Outstanding Check No. 613	(137.40)
Total deductions		(625.50)
Adjusted balance		$9,577.00

Cash balance according to company's records		$9,604.70
Deduct: Bank service charges		(27.70)
Adjusted balance		$9,577.00

JULY BANK STATEMENT:

MEMBER FDIC			PAGE 1
AMERICAN NATIONAL BANK OF DETROIT		ACCOUNT NUMBER
		FROM 7/01/20Y0	TO 7/31/20Y0
DETROIT, MI 48201-2500 (313) 933-8547		BALANCE	9,421.70
	9	DEPOSITS	6,096.35
	20	WITHDRAWALS	7,655.74
SUNSHINE INTERIORS	4	OTHER DEBITS AND CREDITS	3,749.00CR
		NEW BALANCE	11,611.31

CHECKS AND OTHER DEBITS	DEPOSITS	DATE	BALANCE
No. 580	310.10	No. 612	92.50		780.80	07/01	9,799.90
No. 602	85.50	No. 614	243.50		569.50	07/03	10,040.40
No. 615	350.10	No. 616	279.90		701.80	07/06	10,112.20
No. 617	395.50	No. 618	435.40		819.24	07/11	10,100.54
No. 619	320.10	No. 620	238.87		580.70	07/13	10,122.27
No. 621	309.50	No. 624	707.01		MS 4,000.00	07/14	13,105.76
No. 625	158.63	No. 626	550.03		MS 160.00	07/14	12,557.10
No. 627	317.73	No. 629	329.90		600.10	07/17	12,509.57
No. 630	882.80	No. 631	1,081.56	NSF 375.00		07/20	10,170.21
No. 632	325.40	No. 634	241.71		701.26	07/21	10,304.36
					741.45	07/24	11,045.81
					601.50	07/28	11,647.31
		SC	36.00			07/31	11,611.31

EC –– ERROR CORRECTION		OD –– OVERDRAFT
MS –– MISCELLANEOUS		PS –– PAYMENT STOPPED
NSF –– NOT SUFFICIENT FUNDS		SC –– SERVICE CHARGE
THE RECONCILEMENT OF THIS STATEMENT WITH YOUR RECORDS IS ESSENTIAL.
ANY ERROR OR EXCEPTION SHOULD BE REPORTED IMMEDIATELY.

Required:

1. Prepare a bank reconciliation as of July 31, 20Y0. 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.

Bank Reconciliation
July 31, 20YO
Cash balance according to bank statement
Add: Deposit in transit on July 31
Deduct: Outstanding Check no. 613
Deduct: Outstanding Check No. 628
Deduct: Outstanding Check No. 633
Total deductions
Adjusted balance
Cash balance according to company's records
Add: Note collected by bank, including $160.00 interest
Add: Error in recording July 23 deposit
Add: Error in recording Check No. 627
Total additions
Deduct: Check returned because of insufficient funds
Deduct: Bank service charges
Total deductions
Adjusted balance

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