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. BANK RECONCILIATION FOR PRECEDING MONTH (DATED JUNE 30): Cash balance according to bank statement.. Add deposit of June 30, not recorded by bank.. $ 9,422.80 780.80 Deduct outstanding checks: No. 580 .... $310.10 No. 602 85.50 No. 612 92.50 137.50 No. 613 625.60 $ 9,578.00 $ 9,605.70 Adjusted balance. Cash balance according to company's records.. Deduct bank service charges... Adjusted balance.... 27.70 $ 9,578.00 CASH ACCOUNT: Balance as of July 1 $ 9,578.00 CASH RECEIPTS FOR MONTH OF JULY 6,465.42 DUPLICATE DEPOSIT TICKETS: Date and amount of each deposit in July: Date Amount Date Amount Date Amount $ 713.45 July 12 July 2 $569.50 $580.70 July 23 600.10 701.80 16 26 601.50 819.24 19 701.26 31 1,177.87 CHECKS WRITTEN: Number and amount of each check issued in July: Amount Check No. Amount Check No. Check No. Amount $243.50 628 $ 837.70 614 621 $309.50 Void 329.90 615 350.10 622 629 Void 882.80 616 279.90 623 630 617 395.50 624 707.01 631 1,081.56 618 435.40 625 158.63 632 325.40 619 320.10 626 550.03 633 310.08 620 238.87 627 381.73 634 241.71 Total amount of checks issued in July $8,379.42 JULY BANK STATEMENT: PAGE MEMBER FDIC ACCOUNT NUMBER AMERICAN NATIONAL BANK OF DETROIT TO 7/31/20YB FROM 7/01/20YB (313) 933-8547 DETROIT, MI 48201-2500 BALANCE 0,482.80 9 DEPOSITS 8,088.35 20 WITHDRAWAL5 7,8B8.74 SUNSHINE INTERIORS 4 OTHER DEBITS AND CREDITS 3,740.000R NEW BALANCE 11,601.41 - DEPOGITS --- DATE -. – BALANOE-. CHECKS AND OTHER DEBITS- 310. 10 BB. B0 Nо.Bво Nae12 02.B0 7в0.80 07 /01 9,801.00 No.608 10,041.B0 Na814 343.80 Be0.80 No.618 Зв0.10 Na.e16 a70.00 701.80 07/08 10,113.30 B10.94 07/11 10,101.04 No.617 30B.B0 Nae18 435.40 No. 630 Na. 634 07/15 No.619 320.10 338.87 Ba0.70 10,123.37 300.80 ME 4,000.00 No.6a1 707.01 07/14 13,108.8e No.638 168.03 180.00 07/14 No.eae BB0.03 12,868.30 No.627 07/17 318.73 No.630 330.00 800.10 13,800.87 No.630 88a.80 No.631 1,081.66 NEF 37S.00 07/20 10,170.31 O7/a1 10,304.48 No.638 328.40 No.634 241.71 701.38 731.48 07/24 11,058.01 11,687.41 11,801.41 801.80 07/28 36.00 07/31 OD - OVERDRAPT Bо — ЕНВОв СОВНЕСТОN мS -- МзолANEOUS PS - PAYMENT STOPPED 80 - SERVICE CHARGE NEF - NOT SUFFICIENT FUNDS ... ... THE RECONCILEMENT OF THIS STATEMEKNT WITH YOUR HECORDS IE E38ENTIAL. ANY EHHOH OR EXCEPTION EHOULD BE REPORTED IMMEDIATELY. Instructions 1. Prepare a bank reconciliation as of July 31. 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. 2. Journalize the necessary entries. The accounts have not been closed. 3. What is the amount of Cash that should appear on the balance sheet as of July 31? Assume that a canceled check for $180 has been incorrectly recorded by the bank as $1,800. Briefly explain how the error would be included in a bank reconcili- 4. ation and how it should be corrected.