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 $ $ $ Adjusted balance $ Cash balance according to company's records $ $ $ $ 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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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		$

		$
	$



Adjusted balance		$
Cash balance according to company's records		$
	$

		$
	$

Adjusted balance		$

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