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Bank Reconciliation and Entries 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. CASH ACCOUNT:       Balance as of July 1     $9,577.00 CASH RECEIPTS FOR MONTH OF JULY     6,466.42 DUPLICATE DEPOSIT TICKETS: Date and amount of each deposit in July: Date Amount Date Amount Date Amount July 2   $569.50   July 12   $580.70   July 23   $714.45   5   701.80   16   600.10   26   601.50   9   819.24   19   701.26   31   1,177.87   CHECKS WRITTEN: Number and amount of each check issued in July: Check No. Amount Check No. Amount Check No. Amount 614   $243.50   621   $309.50   628   $837.70   615   350.10   622   Void   629   329.90   616   279.90   623   Void   630   882.80   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   371.73   634   241.71   Total amount of checks issued in July $8,369.42   BANK RECONCILIATION FOR PRECEDING MONTH: Sunshine Interiors Bank Reconciliation June 30, 20Y0 Cash balance according to bank statement       $9,421.70  Add: Deposit of June 30 not recorded by bank       $780.80  Deduct: Outstanding Check No. 580   ($310.10)                   Outstanding Check No. 602   (85.50)                   Outstanding Check No. 612   (92.50)                   Outstanding Check No. 613   (137.40)                        Total deductions       (625.50) Adjusted balance       $9,577.00            Cash balance according to company's records       $9,604.70  Deduct: Bank service charges       (27.70) Adjusted balance       $9,577.00 JULY BANK STATEMENT: MEMBER FDIC     PAGE 1 AMERICAN NATIONAL BANK OF DETROIT   ACCOUNT NUMBER       FROM 7/01/20Y0 TO 7/31/20Y0 DETROIT, MI 48201-2500 (313) 933-8547   BALANCE 9,421.70   9 DEPOSITS 6,096.35   20 WITHDRAWALS 7,655.74 SUNSHINE INTERIORS 4 OTHER DEBITS AND CREDITS 3,749.00CR     NEW BALANCE 11,611.31 CHECKS AND OTHER DEBITS DEPOSITS DATE BALANCE No. 580 310.10 No. 612 92.50   780.80 07/01 9,799.90 No. 602 85.50 No. 614 243.50   569.50 07/03 10,040.40 No. 615 350.10 No. 616 279.90   701.80 07/06 10,112.20 No. 617 395.50 No. 618 435.40   819.24 07/11 10,100.54 No. 619 320.10 No. 620 238.87   580.70 07/13 10,122.27 No. 621 309.50 No. 624 707.01   MS 4,000.00 07/14 13,105.76 No. 625 158.63 No. 626 550.03   MS 160.00 07/14 12,557.10 No. 627 317.73 No. 629 329.90   600.10 07/17 12,509.57 No. 630 882.80 No. 631 1,081.56 NSF 375.00   07/20 10,170.21 No. 632 325.40 No. 634 241.71   701.26 07/21 10,304.36           741.45 07/24 11,045.81           601.50 07/28 11,647.31     SC 36.00     07/31 11,611.31 EC –– ERROR CORRECTION   OD –– OVERDRAFT MS –– MISCELLANEOUS   PS –– PAYMENT STOPPED NSF –– NOT SUFFICIENT FUNDS   SC –– SERVICE CHARGE THE RECONCILEMENT OF THIS STATEMENT WITH YOUR RECORDS IS ESSENTIAL. ANY ERROR OR EXCEPTION SHOULD BE REPORTED IMMEDIATELY. Required:   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. When required, enter amounts in dollars and cents.

Bank Reconciliation and Entries 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. CASH ACCOUNT:       Balance as of July 1     $9,577.00 CASH RECEIPTS FOR MONTH OF JULY     6,466.42 DUPLICATE DEPOSIT TICKETS: Date and amount of each deposit in July: Date Amount Date Amount Date Amount July 2   $569.50   July 12   $580.70   July 23   $714.45   5   701.80   16   600.10   26   601.50   9   819.24   19   701.26   31   1,177.87   CHECKS WRITTEN: Number and amount of each check issued in July: Check No. Amount Check No. Amount Check No. Amount 614   $243.50   621   $309.50   628   $837.70   615   350.10   622   Void   629   329.90   616   279.90   623   Void   630   882.80   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   371.73   634   241.71   Total amount of checks issued in July $8,369.42   BANK RECONCILIATION FOR PRECEDING MONTH: Sunshine Interiors Bank Reconciliation June 30, 20Y0 Cash balance according to bank statement       $9,421.70  Add: Deposit of June 30 not recorded by bank       $780.80  Deduct: Outstanding Check No. 580   ($310.10)                   Outstanding Check No. 602   (85.50)                   Outstanding Check No. 612   (92.50)                   Outstanding Check No. 613   (137.40)                        Total deductions       (625.50) Adjusted balance       $9,577.00            Cash balance according to company's records       $9,604.70  Deduct: Bank service charges       (27.70) Adjusted balance       $9,577.00 JULY BANK STATEMENT: MEMBER FDIC     PAGE 1 AMERICAN NATIONAL BANK OF DETROIT   ACCOUNT NUMBER       FROM 7/01/20Y0 TO 7/31/20Y0 DETROIT, MI 48201-2500 (313) 933-8547   BALANCE 9,421.70   9 DEPOSITS 6,096.35   20 WITHDRAWALS 7,655.74 SUNSHINE INTERIORS 4 OTHER DEBITS AND CREDITS 3,749.00CR     NEW BALANCE 11,611.31 CHECKS AND OTHER DEBITS DEPOSITS DATE BALANCE No. 580 310.10 No. 612 92.50   780.80 07/01 9,799.90 No. 602 85.50 No. 614 243.50   569.50 07/03 10,040.40 No. 615 350.10 No. 616 279.90   701.80 07/06 10,112.20 No. 617 395.50 No. 618 435.40   819.24 07/11 10,100.54 No. 619 320.10 No. 620 238.87   580.70 07/13 10,122.27 No. 621 309.50 No. 624 707.01   MS 4,000.00 07/14 13,105.76 No. 625 158.63 No. 626 550.03   MS 160.00 07/14 12,557.10 No. 627 317.73 No. 629 329.90   600.10 07/17 12,509.57 No. 630 882.80 No. 631 1,081.56 NSF 375.00   07/20 10,170.21 No. 632 325.40 No. 634 241.71   701.26 07/21 10,304.36           741.45 07/24 11,045.81           601.50 07/28 11,647.31     SC 36.00     07/31 11,611.31 EC –– ERROR CORRECTION   OD –– OVERDRAFT MS –– MISCELLANEOUS   PS –– PAYMENT STOPPED NSF –– NOT SUFFICIENT FUNDS   SC –– SERVICE CHARGE THE RECONCILEMENT OF THIS STATEMENT WITH YOUR RECORDS IS ESSENTIAL. ANY ERROR OR EXCEPTION SHOULD BE REPORTED IMMEDIATELY. Required:   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. When required, enter amounts in dollars and cents.

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 7.18EX
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Bank Reconciliation and Entries

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.

CASH ACCOUNT:      
Balance as of July 1     $9,577.00
CASH RECEIPTS FOR MONTH OF JULY     6,466.42
DUPLICATE DEPOSIT TICKETS:
Date and amount of each deposit in July:
Date Amount Date Amount Date Amount
July 2   $569.50   July 12   $580.70   July 23   $714.45  
5   701.80   16   600.10   26   601.50  
9   819.24   19   701.26   31   1,177.87  

CHECKS WRITTEN:
Number and amount of each check issued in July:
Check No. Amount Check No. Amount Check No. Amount
614   $243.50   621   $309.50   628   $837.70  
615   350.10   622   Void   629   329.90  
616   279.90   623   Void   630   882.80  
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   371.73   634   241.71  
Total amount of checks issued in July $8,369.42  

BANK RECONCILIATION FOR PRECEDING MONTH:

Sunshine Interiors
Bank Reconciliation
June 30, 20Y0
Cash balance according to bank statement       $9,421.70 
Add: Deposit of June 30 not recorded by bank       $780.80 
Deduct: Outstanding Check No. 580   ($310.10)    
              Outstanding Check No. 602   (85.50)    
              Outstanding Check No. 612   (92.50)    
              Outstanding Check No. 613   (137.40)    
                   Total deductions       (625.50)
Adjusted balance       $9,577.00 
         
Cash balance according to company's records       $9,604.70 
Deduct: Bank service charges       (27.70)
Adjusted balance       $9,577.00

JULY BANK STATEMENT:

MEMBER FDIC     PAGE 1
AMERICAN NATIONAL BANK OF DETROIT   ACCOUNT NUMBER  
    FROM 7/01/20Y0 TO 7/31/20Y0
DETROIT, MI 48201-2500 (313) 933-8547   BALANCE 9,421.70
  9 DEPOSITS 6,096.35
  20 WITHDRAWALS 7,655.74
SUNSHINE INTERIORS 4 OTHER DEBITS AND CREDITS 3,749.00CR
    NEW BALANCE 11,611.31
CHECKS AND OTHER DEBITS DEPOSITS DATE BALANCE
No. 580 310.10 No. 612 92.50   780.80 07/01 9,799.90
No. 602 85.50 No. 614 243.50   569.50 07/03 10,040.40
No. 615 350.10 No. 616 279.90   701.80 07/06 10,112.20
No. 617 395.50 No. 618 435.40   819.24 07/11 10,100.54
No. 619 320.10 No. 620 238.87   580.70 07/13 10,122.27
No. 621 309.50 No. 624 707.01   MS 4,000.00 07/14 13,105.76
No. 625 158.63 No. 626 550.03   MS 160.00 07/14 12,557.10
No. 627 317.73 No. 629 329.90   600.10 07/17 12,509.57
No. 630 882.80 No. 631 1,081.56 NSF 375.00   07/20 10,170.21
No. 632 325.40 No. 634 241.71   701.26 07/21 10,304.36
          741.45 07/24 11,045.81
          601.50 07/28 11,647.31
    SC 36.00     07/31 11,611.31
EC –– ERROR CORRECTION   OD –– OVERDRAFT
MS –– MISCELLANEOUS   PS –– PAYMENT STOPPED
NSF –– NOT SUFFICIENT FUNDS   SC –– SERVICE CHARGE
THE RECONCILEMENT OF THIS STATEMENT WITH YOUR RECORDS IS ESSENTIAL.
ANY ERROR OR EXCEPTION SHOULD BE REPORTED IMMEDIATELY.

Required:

 

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. When required, enter amounts in dollars and cents.

2. Journalize the necessary entries (a.) that increase cash and (b.) that decrease cash. The accounts have not been closed. When required, enter amounts in dollars and cents. If an amount box does not require an entry, leave it blank. Cash a. 20Y0 July 31 Notes Receivable Interest Revenue Sales v Accounts Payable Accounts Receivable b. July 31 Miscellaneous Expense Cash 00
Transcribed Image Text:2. Journalize the necessary entries (a.) that increase cash and (b.) that decrease cash. The accounts have not been closed. When required, enter amounts in dollars and cents. If an amount box does not require an entry, leave it blank. Cash a. 20Y0 July 31 Notes Receivable Interest Revenue Sales v Accounts Payable Accounts Receivable b. July 31 Miscellaneous Expense Cash 00
Bank Reconciliation July 31, 20YO Cash balance according to bank statement Add: Deposit in transit on July 31 Deduct: Outstanding Check no. 613 Deduct: Outstanding Check No. 628 Deduct: Outstanding Check No. 633 Total deductions Adjusted balance Cash balance according to company's records Add: Note collected by bank, including $160.00 interest Add: Error in recording July 23 deposit Add: Error in recording Check No. 627 Total additions Deduct: Check returned because of insufficient funds Deduct: Bank service charges Total deductions Adjusted balance
Transcribed Image Text:Bank Reconciliation July 31, 20YO Cash balance according to bank statement Add: Deposit in transit on July 31 Deduct: Outstanding Check no. 613 Deduct: Outstanding Check No. 628 Deduct: Outstanding Check No. 633 Total deductions Adjusted balance Cash balance according to company's records Add: Note collected by bank, including $160.00 interest Add: Error in recording July 23 deposit Add: Error in recording Check No. 627 Total additions Deduct: Check returned because of insufficient funds Deduct: Bank service charges Total deductions Adjusted balance
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