The following bank reconciliation was prepared as of June 30, 20Y7: Line Item Description Amount Amount Cash balance according to bank statement $15,915 Add: Outstanding Check No. 1067 $565 Outstanding Check No. 1106 450 Outstanding Check No. 1110 1,090 Outstanding Check No. 1113 950 Total additions 3,055 Deduct: Deposit of June 30 not recorded by bank (6,900) Adjusted balance $12,070 Cash balance according to company’s records $8,070 Add: Proceeds of note collected by bank: Face value $6,000 Proceeds of note collected by bank: Interest 300 Service charges 10 Total additions 6,310 Deduct: Check returned because of insufficient funds $900 Error in recording June 17 deposit of $8,150 as $1,850 6,300 Total deductions (7,200) Adjusted balance $7,180 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 Line Item Description Amount Amount Cash balance according to bank statement $ $ $ $ $ $ Total deductions $ Adjusted balance $ Cash balance according to company's records $ $ $ Total additions $ $ $ Total deductions $ Adjusted balance $
The following bank reconciliation was prepared as of June 30, 20Y7: Line Item Description Amount Amount Cash balance according to bank statement $15,915 Add: Outstanding Check No. 1067 $565 Outstanding Check No. 1106 450 Outstanding Check No. 1110 1,090 Outstanding Check No. 1113 950 Total additions 3,055 Deduct: Deposit of June 30 not recorded by bank (6,900) Adjusted balance $12,070 Cash balance according to company’s records $8,070 Add: Proceeds of note collected by bank: Face value $6,000 Proceeds of note collected by bank: Interest 300 Service charges 10 Total additions 6,310 Deduct: Check returned because of insufficient funds $900 Error in recording June 17 deposit of $8,150 as $1,850 6,300 Total deductions (7,200) Adjusted balance $7,180 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 Line Item Description Amount Amount Cash balance according to bank statement $ $ $ $ $ $ Total deductions $ Adjusted balance $ Cash balance according to company's records $ $ $ Total additions $ $ $ Total deductions $ Adjusted balance $
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter6: Bank Accounts, Cash Funds, And Internal Controls
Section: Chapter Questions
Problem 5E
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Question
The following bank reconciliation was prepared as of June 30, 20Y7:
Line Item Description | Amount | Amount |
---|---|---|
Cash balance according to bank statement | $15,915 | |
Add: Outstanding Check No. 1067 | $565 | |
Outstanding Check No. 1106 | 450 | |
Outstanding Check No. 1110 | 1,090 | |
Outstanding Check No. 1113 | 950 | |
Total additions | 3,055 | |
Deduct: Deposit of June 30 not recorded by bank | (6,900) | |
Adjusted balance | $12,070 | |
Cash balance according to company’s records | $8,070 | |
Add: Proceeds of note collected by bank: Face value | $6,000 | |
Proceeds of note collected by bank: Interest | 300 | |
Service charges | 10 | |
Total additions | 6,310 | |
Deduct: Check returned because of insufficient funds | $900 | |
Error in recording June 17 deposit of $8,150 as $1,850 | 6,300 | |
Total deductions | (7,200) | |
Adjusted balance | $7,180 |
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.
Line Item Description | Amount | Amount |
---|---|---|
Cash balance according to bank statement | $ | |
|
$ | |
|
$ | |
|
$ | |
|
$ | |
|
$ | |
Total deductions | $ | |
Adjusted balance | $ | |
Cash balance according to company's records | $ | |
|
$ | |
|
$ | |
Total additions | $ | |
|
$ | |
|
$ | |
Total deductions | $ | |
Adjusted balance | $ |
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