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Bank Reconciliation The following bank reconciliation was prepared as of June 30, 20Y7: Poway Co. Bank...

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 $16,185 Adjustments: Outstanding Check No.1067 $575 Outstanding Check No.1106 470 Outstanding Check No.1110 1,050 Outstanding Check No.1113 910 Deposit of June 30 not recorded by bank (6,600) Total adjustments (3,595) Adjusted balance $12,590 Cash balance according to company’s records $8,985 Adjustments: Proceeds of note collected by bank: Face value $6,000 Proceeds of note collected by bank: Interest 300 Service charges 15 Check returned because of insufficient funds (890) Error in recording June 17 deposit of $7,150 as $1,750 (5,400) Total adjustments 25 Adjusted balance $9,010 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 $ Adjustments: $ Total adjustments Adjusted balance $ Cash balance according to company's records $ Adjustments: $ Total adjustments Adjusted balance $

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 $16,185
Adjustments:
  Outstanding Check No.1067 $575
  Outstanding Check No.1106 470
  Outstanding Check No.1110 1,050
  Outstanding Check No.1113 910
  Deposit of June 30 not recorded by bank (6,600)
    Total adjustments (3,595)
Adjusted balance $12,590
Cash balance according to company’s records $8,985
Adjustments:
  Proceeds of note collected by bank: Face value $6,000
  Proceeds of note collected by bank: Interest 300
  Service charges 15
  Check returned because of insufficient funds (890)
  Error in recording June 17 deposit of $7,150 as $1,750 (5,400)
    Total adjustments 25
Adjusted balance $9,010

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 $
Adjustments:
$
Total adjustments
Adjusted balance $
Cash balance according to company's records $
Adjustments:
$
Total adjustments
Adjusted balance $

Solutions

Expert Solution

a Item Error
Heading June 30, 20Y7
Outstanding checks It should be deducted
Deposit of June 30 It should be Added
Service Charges It should be deducted
Error in June 17 deposit It should be Added
Adjusted balance per the bank $19,780
b Poway Co
Bank Reconciliation
For the month ended june 30, 20Y7
Cash Balance According to Bank Statement $16,185
Adjustments:
Less: Outstanding checks No. 1067 ($575)
Outstanding checks No. 1106 ($470)
Outstanding checks No. 1110 ($1,050)
Outstanding checks No. 1113 ($910)
Add: Deposit of June 30, not recorded by bank $6,600
Total Adjustments $3,595
Adjusted Balance per bank $19,780
Cash Balance According to Company's records $8,985
Adjustments:
Proceeds of note collected by bank - Face Value $6,000
Proceeds of note collected by bank - Interest $300
Service Charges ($15)
Check returned because of insufficient funds ($890)
Error in recording June 17 deposit of $7,150 as $1,750 $5,400
Total Adjustments $10,795
Adjusted Balance per company's records $19,780

ekkarill92 answered 2 years ago
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