In: Accounting
Bank Reconciliation and Entries
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
follows. The sources of the data are printed in capital letters.
All checks were written for payments on account.
BANK RECONCILIATION FOR PRECEDING MONTH (DATED JUNE 30): | |
Cash balance according to bank statement | $9,422.80 |
Add deposit of June 30, not recorded by bank | 780.80 |
$10,203.60 |
Deduct outstanding checks: | |||
No. 580 | $310.10 | ||
No. 602 | 85.50 | ||
No. 612 | 92.50 | ||
No. 613 | 137.50 | 625.60 | |
Adjusted balance | $9,578.00 | ||
Cash balance according to company's records | $9,605.70 | ||
Deduct bank service charges | 27.70 | ||
Adjusted balance | $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 | $580.70 | July 23 | $ 713.45 | ||||||
5 | 701.80 | 16 | 600.10 | 26 | 601.50 | ||||||
9 | 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 |
Click here to see JUNE BANK STATEMENT.
Required:
1. 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. When required, enter amounts in dollars and cents.
Sunshine Interiors | ||
Bank Reconciliation | ||
July 31, 20Y5 | ||
Cash balance according to bank statement | $ | |
Add deposit of July 31, not recorded by bank | ||
Deduct check no. 613 | $ | |
Deduct check no. 628 | ||
Deduct check no. 633 | ||
Adjusted balance | $ | |
Cash balance according to company's records | $ | |
Add note and interest collected by bank | $ | |
Add error in recording July 23 deposit | ||
Add error in recording check No. 627 | ||
Deduct check returned because of insufficient funds | $ | |
Deduct bank service charges | ||
Adjusted balance | $ |
2. Journalize the necessary entries (a.) that increase cash and (b.) that decrease cash. The accounts have not been closed. When required, enter amounts in dollars and cents. For a compound transaction, if an amount box does not require an entry, leave it blank.
a. 20Y5 July 31 | Cash | ||
Notes Receivable | |||
Interest Revenue | |||
Sales | |||
Accounts Payable | |||
b. July 31 | Accounts Receivable | ||
Miscellaneous Expense | |||
Cash |
3. What is the amount of Cash that should
appear on the balance sheet as of July 31?
$______
I have already filled-in some of the answers that I know for sure are right, I need the other blanks :)