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Instructions 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. 2. Journalize the necessary entries. 3. What is the amount of cash that should appear on the balance sheet as of July 31, 20Y0?

Instructions 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. 2. Journalize the necessary entries. 3. What is the amount of cash that should appear on the balance sheet as of July 31, 20Y0?

Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter5: Internal Control And Cash
Section: Chapter Questions
Problem 5.4.3P
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Instructions 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. 2. Journalize the necessary entries. 3. What is the amount of cash that should appear on the balance sheet as of July 31, 20YO? 4. 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 reconciliation and how it should be corrected.
Transcribed Image Text:Instructions 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. 2. Journalize the necessary entries. 3. What is the amount of cash that should appear on the balance sheet as of July 31, 20YO? 4. 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 reconciliation and how it should be corrected.
BANK RECONCILIATION FOR PRECEDING MONTH Sunshine interiors Bank Reconciliation June 30, 20YO Cash balance according to bank statement................ .. Adjustments: Deposit of June 30 not recorded by bank Outstanding Check No. S00.. Outstanding Check No. 602 Outstanding Check No. 612 Outstanding Check No. 613 Total adjustments . Adjusted balance... $9,42280 PR 7-5B Bank reconciliation and entries Obj. 5 S 780.80 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. (31a.10) 19250) (13750) 155 20 59,578.00 CASH ACCOUNT: ....... Balance as of July 1 $9,578.00 CASH RECEIPTS FOR MONTH OF JULY 6,465.42 Cash balance according to company's records Adjustments: Bank service charges Adjusted balance........ S9,605.70 DUPLICATE DEPOSIT TICKETS: Date and amount of each deposit in July: (27.70) $9.578.00 Date Amount Date Amount Date Amount July 2 S569.50 July 12 $ 713.45 $580.70 600.10 July 23 5 701.80 16 26 601.50 JULY BANK STATEMENT: 9 819.24 19 701.26 31 1,177.87 PAGE MEMBER FOIC CHECKS WRITTEN: ACCOUNT NUMDER AMERICAN NATIONAL BANK Number and amount of each check issued in July: OF DETROIT FROM 7/01/aovo TO 7/31/20YO Check No. Amount $243.50 Check No. Amount Check No. Amount DETROIT, MI 48201-2500 01) 933-8547 BALANCE 9,422.80 614 621 $309.50 628 S 837.70 s peros 615 350.10 622 Void 629 329.90 20 WITHDRAWALS 7.660.74 616 279.90 623 Void 630 882.80 395.50 NTRInes 4 UIK UNBI 617 624 707.01 631 1,081.56 AND CREDITS 3,740.00CR 618 435.40 625 158.63 632 325.40 619 320.10 626 550.03 633 310.08 NEW BALANCE 11,601.41 620 238.87 627 381.73 634 241.71 ---- CHECKS AND OTHER DERITS -- .- . DEPOSTS -- DATE -- RALANCE- Total amount of checks issued in July $8,379.42 80 310.10 780.80 07/01 0,601.00 6.60 243.60 O7/03 10.041 60 a 18 360.10 Na. 616 a70.00 701.80 OT/06 10,118.30 10,101.4 10,1s.37 a 17 a96.60 436.40 07/11 a 610 320.10 236.87 07/13 a. a1 300 RO o. eas 166.68 MS 4.000.00 MS 160.0o 707.01 07/14 13.106.88 660.03 07/14 12.68 20 a. ea7 318.Ta 600.10 O7/17 12.600 e7 10,1031 10.304 40 Na 631 1,081.66 NP a76.00 O7/20 o. 63a s26.40 Na. 634 241.71 701.06 07/21 11,67.41 34.00 O7/31 11,601.41 C-ROR CORREOTION OD- OVERDRAT M-MISCELLANEOUB NOP-HOT Ourmomarr PUNDO PA- PAYMEorr TOPPED D0-anvom oLAnon ... ... THE REOONCILEMENT OF IHas atA NT wIH YOUR cOE arLAL. ANY ERROR OR XORPION SHOULD HR KEPORTD IMMEDATKLY
Transcribed Image Text:BANK RECONCILIATION FOR PRECEDING MONTH Sunshine interiors Bank Reconciliation June 30, 20YO Cash balance according to bank statement................ .. Adjustments: Deposit of June 30 not recorded by bank Outstanding Check No. S00.. Outstanding Check No. 602 Outstanding Check No. 612 Outstanding Check No. 613 Total adjustments . Adjusted balance... $9,42280 PR 7-5B Bank reconciliation and entries Obj. 5 S 780.80 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. (31a.10) 19250) (13750) 155 20 59,578.00 CASH ACCOUNT: ....... Balance as of July 1 $9,578.00 CASH RECEIPTS FOR MONTH OF JULY 6,465.42 Cash balance according to company's records Adjustments: Bank service charges Adjusted balance........ S9,605.70 DUPLICATE DEPOSIT TICKETS: Date and amount of each deposit in July: (27.70) $9.578.00 Date Amount Date Amount Date Amount July 2 S569.50 July 12 $ 713.45 $580.70 600.10 July 23 5 701.80 16 26 601.50 JULY BANK STATEMENT: 9 819.24 19 701.26 31 1,177.87 PAGE MEMBER FOIC CHECKS WRITTEN: ACCOUNT NUMDER AMERICAN NATIONAL BANK Number and amount of each check issued in July: OF DETROIT FROM 7/01/aovo TO 7/31/20YO Check No. Amount $243.50 Check No. Amount Check No. Amount DETROIT, MI 48201-2500 01) 933-8547 BALANCE 9,422.80 614 621 $309.50 628 S 837.70 s peros 615 350.10 622 Void 629 329.90 20 WITHDRAWALS 7.660.74 616 279.90 623 Void 630 882.80 395.50 NTRInes 4 UIK UNBI 617 624 707.01 631 1,081.56 AND CREDITS 3,740.00CR 618 435.40 625 158.63 632 325.40 619 320.10 626 550.03 633 310.08 NEW BALANCE 11,601.41 620 238.87 627 381.73 634 241.71 ---- CHECKS AND OTHER DERITS -- .- . DEPOSTS -- DATE -- RALANCE- Total amount of checks issued in July $8,379.42 80 310.10 780.80 07/01 0,601.00 6.60 243.60 O7/03 10.041 60 a 18 360.10 Na. 616 a70.00 701.80 OT/06 10,118.30 10,101.4 10,1s.37 a 17 a96.60 436.40 07/11 a 610 320.10 236.87 07/13 a. a1 300 RO o. eas 166.68 MS 4.000.00 MS 160.0o 707.01 07/14 13.106.88 660.03 07/14 12.68 20 a. ea7 318.Ta 600.10 O7/17 12.600 e7 10,1031 10.304 40 Na 631 1,081.66 NP a76.00 O7/20 o. 63a s26.40 Na. 634 241.71 701.06 07/21 11,67.41 34.00 O7/31 11,601.41 C-ROR CORREOTION OD- OVERDRAT M-MISCELLANEOUB NOP-HOT Ourmomarr PUNDO PA- PAYMEorr TOPPED D0-anvom oLAnon ... ... THE REOONCILEMENT OF IHas atA NT wIH YOUR cOE arLAL. ANY ERROR OR XORPION SHOULD HR KEPORTD IMMEDATKLY
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