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

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

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 7.3BE

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Question

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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