Bank Reconciliation and Entries

Sunshine Interiors deposits all Coins, currency (paper money), checks, money orders, and money on deposit that is available for unrestricted withdrawal from banks and other financial institutions.cash receipts each Wednesday and Friday in a night depository, after banking hours. The data required to reconcile the A summary of all transactions mailed to the depositor or made available online by the bank each month.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 Total  $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

July 2  $569.50 5th 701.80 9Th 819.24

July 12 $580.70 16TH 60010 19Th 701.26

July 23 $713.45 26Th 601.50 31St 1177.87

 

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 $87.70

615 350.10 622 void 629 329.30

616 279.90 623 void 630 882.80

617 395.50 624 707.01 631 1081.56

618 435.40 625 158.63 632 325.40

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.

20Y5 July 31 1 . Accounts A. Accounts Receivable B. Cash C. Interest Revenue D. Notes Receivable E. Sales$____

2.A . Accounts Receivable B Cash C. Interest Payable D. Petty Cash E. Notes Receivable $_____

3.A . Accounts Receivable B Cash C. Interest Expense D. Interest Revenue E. Unearned Interest$_____

4.A. Account Receivable B. Cash C. Interest Payable D. Interest Receivable E. Sales$_____

5.A. Accounts Payable B. Accounts Receivable C. Cash. D.Interest Expense E. Cash short and over $____

b. July 31

  1. A. Accounts Payable B. Accounts Receivable C. Cash short or Over D. Petty Cash E. Interest Receivable
  2. A. Accounts Payable B. Cash Over and Short C. Miscellaneous Expense D. Miscellaneous Administrative Revenue E. Petty Cash
  3. A. Accounts Payable B. Accounts Receivable C. Cash D. Miscellaneous Revenue E. Cash Short and Over

3. What is the amount of Cash that should appear on the balance sheet as of July 31?

$_____

4. Assume that a canceled check for $180 has been incorrectly recorded by the bank as $1,800. Select how the error would be included in a bank reconciliation and how it should be corrected.

Treatment____       A. Not included in a bank reconciliation

B.Addition to cash per depositor’s records

C.Deduction from cash per bank statement

D.Deduction from cash per depositor’s records

E.Addition to cash per bank statement

To correct_____

A. Journalize a correcting entry adding $1,800 to cash

B.Journalize an entry deducting $1,620 from cash

C.Request that the bank correct the error

D.Journalize an entry adding $1,620 to cash

E.Journalize an entry deducting $1,800 from cash


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