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Bank Reconciliation The following bank reconciliation was prepared as of June 30, 20Y7: Poway Co. Bank Reconciliation For the Month Ended June 30, 20Y7 Cash balance according to bank statement $16,000 Add: Outstanding Check No. 1067 $590 Outstanding Check No.1106 500 Outstanding Check No.1110 1,050 Outstanding Check No.1113 910 Total additions 3,050 Deduct: Deposit of June 30 not recorde by bank (6,800) Adjusted balance $12,250 Cash balance according to company's records $8,795 Add: Proceeds of note collected by bank: Face value $7,000 Proceeds of note collected by bank: Interest 350 Service charges 15 Total additions 7,365 Deduct: Check returned because of insufficient funds $880

Bank Reconciliation The following bank reconciliation was prepared as of June 30, 20Y7: Poway Co. Bank Reconciliation For the Month Ended June 30, 20Y7 Cash balance according to bank statement $16,000 Add: Outstanding Check No. 1067 $590 Outstanding Check No.1106 500 Outstanding Check No.1110 1,050 Outstanding Check No.1113 910 Total additions 3,050 Deduct: Deposit of June 30 not recorde by bank (6,800) Adjusted balance $12,250 Cash balance according to company's records $8,795 Add: Proceeds of note collected by bank: Face value $7,000 Proceeds of note collected by bank: Interest 350 Service charges 15 Total additions 7,365 Deduct: Check returned because of insufficient funds $880

Financial And Managerial Accounting
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter7: Internal Control And Cash
Section: Chapter Questions
Problem 22E
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Bank Reconciliation The following bank reconciliation was prepared as of June 30, 20Y7: Poway Co. Bank Reconciliation For the Month Ended June 30, 20Y7 Cash balance according to bank statement $16,000 Add: Outstanding Check No. 1067 $590 Outstanding Check No.1106 500 Outstanding Check No.1110 1,050 Outstanding Check No.1113 910 Total additions 3,050 Deduct: Deposit of June 30 not recordedby bank (6,800) Adjusted balance $12,250 Cash balance according to company's records $8,795 Add: Proceeds of note collected by bank: Face value $7,000 Proceeds of note collected by bank: Interest 350 Service charges 15 Total additions 7,365 Deduct: Check returned because of insufficient funds $880
Transcribed Image Text:Bank Reconciliation The following bank reconciliation was prepared as of June 30, 20Y7: Poway Co. Bank Reconciliation For the Month Ended June 30, 20Y7 Cash balance according to bank statement $16,000 Add: Outstanding Check No. 1067 $590 Outstanding Check No.1106 500 Outstanding Check No.1110 1,050 Outstanding Check No.1113 910 Total additions 3,050 Deduct: Deposit of June 30 not recordedby bank (6,800) Adjusted balance $12,250 Cash balance according to company's records $8,795 Add: Proceeds of note collected by bank: Face value $7,000 Proceeds of note collected by bank: Interest 350 Service charges 15 Total additions 7,365 Deduct: Check returned because of insufficient funds $880
OBOOK Print Item Deduct: Check returned because of insufficient funds $880 Error in recording June 17 deposit of $8,350 as $3,850 4,500 Total deductions (5,380) Adjusted balance $10,780 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 b. Prepare a corrected bank reconciliation. Poway Co. Bank Reconciliation June 30, 20Y7 Cash balance according to bank statement %24
Transcribed Image Text:OBOOK Print Item Deduct: Check returned because of insufficient funds $880 Error in recording June 17 deposit of $8,350 as $3,850 4,500 Total deductions (5,380) Adjusted balance $10,780 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 b. Prepare a corrected bank reconciliation. Poway Co. Bank Reconciliation June 30, 20Y7 Cash balance according to bank statement %24
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