Bank Reconciliation The following June 30 bank reconciliation was prepared for Poway Co. Poway Co. Bank Reconciliation For the Month Ended June 30 Cash balance according to bank statement         $16,185 Add outstanding checks:             No. 1067     $575             1106     470             1110     1,050             1113     910   3,005           $19,190 Deduct deposit of June 30, not recorded by bank         6,600 Adjusted balance         $12,590 Cash balance according to company’s records         $8,985 Add: Proceeds of note collected by bank:                 Principal $6,000               Interest 300   $6,300         Service charges     15   6,315           $15,300 Deduct: Check returned because of insufficient funds     $890             Error in recording June 17 deposit of $7,150 as $1,750     5,400   6,290 Adjusted balance         $ 9,010 a. Identify the errors in the above bank reconciliation. Item Correct Heading   Outstanding checks   Deposit of June 30   Service charges   Error in June 17 deposit   b. Prepare a new bank reconciliation for Poway Co., using the format shown in the illustrative problem. Poway Co. Bank Reconciliation June 30 Cash balance according to bank statement   $fill in the blank d72a31f5e06efc9_1     fill in the blank d72a31f5e06efc9_3     $fill in the blank d72a31f5e06efc9_4   $fill in the blank d72a31f5e06efc9_6     fill in the blank d72a31f5e06efc9_8     fill in the blank d72a31f5e06efc9_10     fill in the blank d72a31f5e06efc9_12 fill in the blank d72a31f5e06efc9_13 Adjusted balance   $fill in the blank d72a31f5e06efc9_14 Cash balance according to company's records   $fill in the blank d72a31f5e06efc9_15   $fill in the blank d72a31f5e06efc9_17     fill in the blank d72a31f5e06efc9_19 fill in the blank d72a31f5e06efc9_20     $fill in the blank d72a31f5e06efc9_21   $fill in the blank d72a31f5e06efc9_23     fill in the blank d72a31f5e06efc9_25 fill in the blank d72a31f5e06efc9_26 Adjusted balance

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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  1. Bank Reconciliation

    The following June 30 bank reconciliation was prepared for Poway Co.

    Poway Co.
    Bank Reconciliation
    For the Month Ended June 30
    Cash balance according to bank statement         $16,185
    Add outstanding checks:          
      No. 1067     $575    
            1106     470    
            1110     1,050    
            1113     910   3,005
              $19,190
    Deduct deposit of June 30, not recorded by bank         6,600
    Adjusted balance         $12,590
    Cash balance according to company’s records         $8,985
    Add: Proceeds of note collected by bank:          
          Principal $6,000        
          Interest 300   $6,300    
        Service charges     15   6,315
              $15,300
    Deduct: Check returned because of insufficient funds     $890    
            Error in recording June 17 deposit of $7,150 as $1,750     5,400   6,290
    Adjusted balance         $ 9,010

    a. Identify the errors in the above bank reconciliation.

    Item Correct
    Heading  
    Outstanding checks  
    Deposit of June 30  
    Service charges  
    Error in June 17 deposit  

    b. Prepare a new bank reconciliation for Poway Co., using the format shown in the illustrative problem.

    Poway Co.
    Bank Reconciliation
    June 30
    Cash balance according to bank statement   $fill in the blank d72a31f5e06efc9_1
        fill in the blank d72a31f5e06efc9_3
        $fill in the blank d72a31f5e06efc9_4
      $fill in the blank d72a31f5e06efc9_6  
      fill in the blank d72a31f5e06efc9_8  
      fill in the blank d72a31f5e06efc9_10  
      fill in the blank d72a31f5e06efc9_12 fill in the blank d72a31f5e06efc9_13
    Adjusted balance   $fill in the blank d72a31f5e06efc9_14
    Cash balance according to company's records   $fill in the blank d72a31f5e06efc9_15
      $fill in the blank d72a31f5e06efc9_17  
      fill in the blank d72a31f5e06efc9_19 fill in the blank d72a31f5e06efc9_20
        $fill in the blank d72a31f5e06efc9_21
      $fill in the blank d72a31f5e06efc9_23  
      fill in the blank d72a31f5e06efc9_25 fill in the blank d72a31f5e06efc9_26
    Adjusted balance   $fill in the blank d72a31f5e06efc9_27
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