Bank reconciliation The following bank reconciliation was prepared as of June 30, 20Y7: Line Item Description Amount Amount Cash balance according to bank statement $15,915 Add: Outstanding Check No. 1067 $565 Outstanding Check No. 1106 450 Outstanding Check No. 1110 1,090 Outstanding Check No. 1113 950 Total additions 3,055 Deduct: Deposit of June 30 not recorded by bank (6,900) Adjusted balance $12,070 Cash balance according to company’s records $8,070 Add: Proceeds of note collected by bank: Face value $6,000 Proceeds of note collected by bank: Interest 300 Service charges 10 Total additions 6,310 Deduct: Check returned because of insufficient funds $900 Error in recording June 17 deposit of $8,150 as $1,850 6,300 Total deductions (7,200) Adjusted balance $7,180 Question Content Area a. Identify the errors in the following bank reconciliation: Item Correct Heading Outstanding checks Deposit of June 30 Service charges Error in June 17 deposit Adjusted balance per the bank
Bank reconciliation The following bank reconciliation was prepared as of June 30, 20Y7: Line Item Description Amount Amount Cash balance according to bank statement $15,915 Add: Outstanding Check No. 1067 $565 Outstanding Check No. 1106 450 Outstanding Check No. 1110 1,090 Outstanding Check No. 1113 950 Total additions 3,055 Deduct: Deposit of June 30 not recorded by bank (6,900) Adjusted balance $12,070 Cash balance according to company’s records $8,070 Add: Proceeds of note collected by bank: Face value $6,000 Proceeds of note collected by bank: Interest 300 Service charges 10 Total additions 6,310 Deduct: Check returned because of insufficient funds $900 Error in recording June 17 deposit of $8,150 as $1,850 6,300 Total deductions (7,200) Adjusted balance $7,180 Question Content Area a. Identify the errors in the following bank reconciliation: Item Correct Heading Outstanding checks Deposit of June 30 Service charges Error in June 17 deposit Adjusted balance per the bank
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
Related questions
Question
Bank reconciliation
The following bank reconciliation was prepared as of June 30, 20Y7:
Line Item Description | Amount | Amount |
---|---|---|
Cash balance according to bank statement | $15,915 | |
Add: Outstanding Check No. 1067 | $565 | |
Outstanding Check No. 1106 | 450 | |
Outstanding Check No. 1110 | 1,090 | |
Outstanding Check No. 1113 | 950 | |
Total additions | 3,055 | |
Deduct: Deposit of June 30 not recorded by bank | (6,900) | |
Adjusted balance | $12,070 | |
Cash balance according to company’s records | $8,070 | |
Add: Proceeds of note collected by bank: Face value | $6,000 | |
Proceeds of note collected by bank: Interest | 300 | |
Service charges | 10 | |
Total additions | 6,310 | |
Deduct: Check returned because of insufficient funds | $900 | |
Error in recording June 17 deposit of $8,150 as $1,850 | 6,300 | |
Total deductions | (7,200) | |
Adjusted balance | $7,180 |
Question Content Area
a.
Identify the errors in the following bank reconciliation:
Item | Correct |
---|---|
Heading |
|
Outstanding checks |
|
Deposit of June 30 |
|
Service charges |
|
Error in June 17 deposit |
|
Adjusted balance per the bank |
|
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