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Bank reconciliation The following bank reconciliation was prepared as of June 30, 2017: Poway Co. Bank Reconciliation For the Month Ended June 30, 2017 Cash balance according to bank statement Add: Outstanding Check No. 1067 Outstanding Check No. 1106 Outstanding Check No. 1110 Outstanding Check No. 1113 Total additions Deduct: Deposit of June 30 not recorded by bank Adjusted balance Cash balance according to company's records $16,185 $555 500 1,010 930 2,995 (6,600) $12,580 $12,710 Add: Proceeds of note collected by bank: Face value Proceeds of note collected by bank: Interest $5,000 250 Service charges Total additions 10 5,260 Deduct: Check returned because of insufficient funds $860 Error in recording June 17 deposit of $6,350 as $3,650 Total deductions 2,700 (3,560) Adjusted balance $14,410 a. Identify the errors in the following bank reconciliation: Item Heading Outstanding checks Deposit of June 30 Service charges Error in June 17 deposit Adjusted balance per the bank b. Prepare a corrected bank reconciliation. Poway Co. Bank Reconciliation June 30, 2017 Line Item Description Cash balance according to bank statement Total deductions Adjusted balance Cash balance according to company's records Total additions Total deductions Adjusted balance Amount Amount Correct 000 0.00

Bank reconciliation The following bank reconciliation was prepared as of June 30, 2017: Poway Co. Bank Reconciliation For the Month Ended June 30, 2017 Cash balance according to bank statement Add: Outstanding Check No. 1067 Outstanding Check No. 1106 Outstanding Check No. 1110 Outstanding Check No. 1113 Total additions Deduct: Deposit of June 30 not recorded by bank Adjusted balance Cash balance according to company's records $16,185 $555 500 1,010 930 2,995 (6,600) $12,580 $12,710 Add: Proceeds of note collected by bank: Face value Proceeds of note collected by bank: Interest $5,000 250 Service charges Total additions 10 5,260 Deduct: Check returned because of insufficient funds $860 Error in recording June 17 deposit of $6,350 as $3,650 Total deductions 2,700 (3,560) Adjusted balance $14,410 a. Identify the errors in the following bank reconciliation: Item Heading Outstanding checks Deposit of June 30 Service charges Error in June 17 deposit Adjusted balance per the bank b. Prepare a corrected bank reconciliation. Poway Co. Bank Reconciliation June 30, 2017 Line Item Description Cash balance according to bank statement Total deductions Adjusted balance Cash balance according to company's records Total additions Total deductions Adjusted balance Amount Amount Correct 000 0.00

Corporate Financial Accounting
Corporate Financial Accounting
14th Edition
ISBN:9781305653535
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter7: Internal Control And Cash
Section: Chapter Questions
Problem 7.3BE
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Bank reconciliation The following bank reconciliation was prepared as of June 30, 2017: Poway Co. Bank Reconciliation For the Month Ended June 30, 2017 Cash balance according to bank statement Add: Outstanding Check No. 1067 Outstanding Check No. 1106 Outstanding Check No. 1110 Outstanding Check No. 1113 Total additions Deduct: Deposit of June 30 not recorded by bank Adjusted balance Cash balance according to company's records $16,185 $555 500 1,010 930 2,995 (6,600) $12,580 $12,710 Add: Proceeds of note collected by bank: Face value Proceeds of note collected by bank: Interest $5,000 250 Service charges Total additions 10 5,260 Deduct: Check returned because of insufficient funds $860 Error in recording June 17 deposit of $6,350 as $3,650 Total deductions 2,700 (3,560) Adjusted balance $14,410 a. Identify the errors in the following bank reconciliation: Item Heading Outstanding checks Deposit of June 30 Service charges Error in June 17 deposit Adjusted balance per the bank b. Prepare a corrected bank reconciliation. Poway Co. Bank Reconciliation June 30, 2017 Line Item Description Cash balance according to bank statement Total deductions Adjusted balance Cash balance according to company's records Total additions Total deductions Adjusted balance Amount Amount Correct 000 0.00
Transcribed Image Text:Bank reconciliation The following bank reconciliation was prepared as of June 30, 2017: Poway Co. Bank Reconciliation For the Month Ended June 30, 2017 Cash balance according to bank statement Add: Outstanding Check No. 1067 Outstanding Check No. 1106 Outstanding Check No. 1110 Outstanding Check No. 1113 Total additions Deduct: Deposit of June 30 not recorded by bank Adjusted balance Cash balance according to company's records $16,185 $555 500 1,010 930 2,995 (6,600) $12,580 $12,710 Add: Proceeds of note collected by bank: Face value Proceeds of note collected by bank: Interest $5,000 250 Service charges Total additions 10 5,260 Deduct: Check returned because of insufficient funds $860 Error in recording June 17 deposit of $6,350 as $3,650 Total deductions 2,700 (3,560) Adjusted balance $14,410 a. Identify the errors in the following bank reconciliation: Item Heading Outstanding checks Deposit of June 30 Service charges Error in June 17 deposit Adjusted balance per the bank b. Prepare a corrected bank reconciliation. Poway Co. Bank Reconciliation June 30, 2017 Line Item Description Cash balance according to bank statement Total deductions Adjusted balance Cash balance according to company's records Total additions Total deductions Adjusted balance Amount Amount Correct 000 0.00
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