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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 have been taken from various documents and records and are reproduced as shown on the next page. The sources of the data are printed in capital letters. All checks were written for payments on account.     INSTRUCTION: Prepare a bank reconciliation as of July 31. 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. Journalize the necessary entries. The accounts have not been closed.

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 have been taken from various documents and records and are reproduced as shown on the next page. The sources of the data are printed in capital letters. All checks were written for payments on account.     INSTRUCTION: Prepare a bank reconciliation as of July 31. 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. Journalize the necessary entries. The accounts have not been closed.

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter8: Fraud, Internal Controls, And Cash
Section: Chapter Questions
Problem 11EB: Using the following information, prepare a bank reconciliation. Bank balance: $12,565. Book...
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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 have been taken from various documents and records and are reproduced as shown on the next page. The sources of the data are printed in capital letters. All checks were written for payments on account.

 

 

INSTRUCTION: Prepare a bank reconciliation as of July 31. 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.

Journalize the necessary entries. The accounts have not been closed.

JULY BANK STATEMENT: PAGE MEMBER FDIC ACCOUNT NUMBER AMERICAN NATIONAL BANK OF DETROIT FROM 7/01/20- TO 7/31/20- DETROIT, MI 48201-2500 (313)933-8547 BALANCE 9,422.80 9 DEPOSITS 6,086.35 20 WITHDRAWALS 7,656.74 SUNSHINE INTERIORS 4 OTHER DEBITS AND CREDITS 3,749.00CR NEW BALANCE 11,601.41 ---- CHECKS AND OTHER DEBITS DEPOSITS -.- DATE -. - BALANCE-. 07/01 9,801.00 No.680 310.10 No.612 92.60 780.80 07/03 10,041.60 No.602 85.50 No.614 243.60 569.80 07/06 10,113.30 No.618 380.10 No.616 279.90 701.80 819.24 07/11 10,101.64 No.617 395.80 No.618 436.40 B80.70 07/13 10,123.37 No.619 320.10 No.620 238.87 13,106.86 12,888.20 No.624 707.01 MS 4,000.00 07/14 No.621 309.80 M8 160.00 07/14 No.625 188.63 No.626 860.03 12,509.67 10,170.31 No.627 318.73 No.629 329.90 800.10 07/17 07/20 1,081.56 NSF 378.00 241.71 No.630 882.80 No.631 701.26 07/21 10,304.46 No.632 325.40 No.634 731.46 07/24 11,036.91 601.80 07/28 11,637.41 07/31 11,601.41 90 36.00 oD - OVERDRAFT PS - PAYMENT STOPPED SC - SERVICE CHARGE EC - ERROR CORRECTION MS - MISCELLANEOUS NSF- NOT SUFFICIENT PUNDS tebe THE RECONCILEMENT OF THIS STATEMENT WITH YOUR RECORDS IS ESSENTIAL. ANY ERROR OR EXCEPTION SHOULD BE REPORTED IMMEDIATELY.
Transcribed Image Text:JULY BANK STATEMENT: PAGE MEMBER FDIC ACCOUNT NUMBER AMERICAN NATIONAL BANK OF DETROIT FROM 7/01/20- TO 7/31/20- DETROIT, MI 48201-2500 (313)933-8547 BALANCE 9,422.80 9 DEPOSITS 6,086.35 20 WITHDRAWALS 7,656.74 SUNSHINE INTERIORS 4 OTHER DEBITS AND CREDITS 3,749.00CR NEW BALANCE 11,601.41 ---- CHECKS AND OTHER DEBITS DEPOSITS -.- DATE -. - BALANCE-. 07/01 9,801.00 No.680 310.10 No.612 92.60 780.80 07/03 10,041.60 No.602 85.50 No.614 243.60 569.80 07/06 10,113.30 No.618 380.10 No.616 279.90 701.80 819.24 07/11 10,101.64 No.617 395.80 No.618 436.40 B80.70 07/13 10,123.37 No.619 320.10 No.620 238.87 13,106.86 12,888.20 No.624 707.01 MS 4,000.00 07/14 No.621 309.80 M8 160.00 07/14 No.625 188.63 No.626 860.03 12,509.67 10,170.31 No.627 318.73 No.629 329.90 800.10 07/17 07/20 1,081.56 NSF 378.00 241.71 No.630 882.80 No.631 701.26 07/21 10,304.46 No.632 325.40 No.634 731.46 07/24 11,036.91 601.80 07/28 11,637.41 07/31 11,601.41 90 36.00 oD - OVERDRAFT PS - PAYMENT STOPPED SC - SERVICE CHARGE EC - ERROR CORRECTION MS - MISCELLANEOUS NSF- NOT SUFFICIENT PUNDS tebe THE RECONCILEMENT OF THIS STATEMENT WITH YOUR RECORDS IS ESSENTIAL. ANY ERROR OR EXCEPTION SHOULD BE REPORTED IMMEDIATELY.
BANK RECONCILIATION FOR PRECEDING MONTH (DATED JUNE 30): Cash balance according to bank statement.. Add deposit of June 30, not recorded by bank. $ 9,422.80 780.80 $10,203.60 Deduct outstanding checks: No. 580 $310.10 No. 602 No. 612 85.50 92.50 No. 613 137.50 625.60 Adjusted balance.. $ 9,578.00 $ 9,605.70 Cash balance according to company's records Deduct service charges. Adjusted balance. 27.70 $ 9,578.00 CASH ACCOUNT: Balance as of July 1 $ 9,578.00 CASH RECEIPTS FOR MONTH OF JULY 6,465.42 DUPLICATE DEPOSIT TICKETS: Date and amount of each deposit in July: Date Amount Date Amount Date Amount July 2 $569.50 July 12 $80.70 July 23 $ 713.45 701.80 16 600.10 26 601.50 819.24 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 1,081.56 618 435.40 625 158.63 632 325.40 619 320.10 626 550.03 633 310.08 620 238.87 627 381.73 634 241.71 Total amount of checks issued in July $8,379.42
Transcribed Image Text:BANK RECONCILIATION FOR PRECEDING MONTH (DATED JUNE 30): Cash balance according to bank statement.. Add deposit of June 30, not recorded by bank. $ 9,422.80 780.80 $10,203.60 Deduct outstanding checks: No. 580 $310.10 No. 602 No. 612 85.50 92.50 No. 613 137.50 625.60 Adjusted balance.. $ 9,578.00 $ 9,605.70 Cash balance according to company's records Deduct service charges. Adjusted balance. 27.70 $ 9,578.00 CASH ACCOUNT: Balance as of July 1 $ 9,578.00 CASH RECEIPTS FOR MONTH OF JULY 6,465.42 DUPLICATE DEPOSIT TICKETS: Date and amount of each deposit in July: Date Amount Date Amount Date Amount July 2 $569.50 July 12 $80.70 July 23 $ 713.45 701.80 16 600.10 26 601.50 819.24 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 1,081.56 618 435.40 625 158.63 632 325.40 619 320.10 626 550.03 633 310.08 620 238.87 627 381.73 634 241.71 Total amount of checks issued in July $8,379.42
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