Question

Adjusted balance PR 7-5B 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, 20YO, have been taken from various documents and records and are reproduced as follows. The sources the data are printed in capital letters. All checks were written for payments on account. Obj.5 $11.494 CASH ACCOUNT: Balance as of July 1 CASH RECEIPTS FOR MONTH OF JULY DUPLICATE DEPOSIT TICKETS: Date and amount of each deposit in July: $9,578,00 6,465.42 Date July 2 Amount $569.50 701.80 819.24 Date July 12 16 19 Amount $580.70 600.10 701.26 Date July 23 26 31 Amount S 713.45 601.50 1,177.87 5 - 622 CHECKS WRITTEN: Number and amount of each check issued in July: Check No. Amount Check No. Amount 614 $243.50 621 $309.50 615 350.10 Void 616 279.90 623 Void 395,50 617 707.01 624 618 435.40 625 626 320.10 550.03 619 381.73 620 238.87 Total amount of checks issued in July Check No. 628 629 630 631 632 633 634 Amount 837.70 329.90 882.80 1,081,56 325.40 310.08 241.71 $8,37942 158.63 627 (Continued)

Answer 1

Sunshine Interiors Requirement 1 Bank Reconciliation July 31,20YO Cash Balance according to bank statement Add :deposit of July 31, not recorded by Bank 11601.41 1177.87 12779.28 Deduct outstanding checks: No. 613 No.618 No.633 Adjusted Balance 137.5 837.7 310.08 1285.28 11494 7664 Cash Balance according to Company's records Add:Proceeds of note collected by Bank: Principal Interest Add:error in recording July 23 deposit Add:error in recording Check No. 627 4000 160 18 63 4241 11905 Deduct : Check returned because of insufficient funds Service Charges Adjusted Balance 375 36 411 11494 Balance as per cash in bank account July 1 Add:July receipts Deduct:July disbursements Balance as per cash in bank account July 31 9578 6465.42 -8379.42 7664

Requirement 2 Journal Enteries Date Particulars Cash a/c Dr. To Notes Receivable To Interest Revenue To Sales To Accounts Payable Debit in $ Cedit in $ 4241 4000 160 18 Accounts Receivable a/c Dr. Miscellaneous Expense a/c Dr. To Cash 375 36 Requirement 3 $11494 should appear on the balance sheet as of July 31, 20YO Requirement 4 Error 1800 - 180 = 1620 which is in the canceled check should be part of balance according to bank statement.Canceled check should be corrected by presenting th same to the bank.