Question

last two sides is for questions 4

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 recond 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 No. 602 No. 612 No. 613 Adjusted balance Cash balance according to company's records 625.60 $9,578.00 59.605.70 Deduct bank service charges 27.70 Adjusted balance $9.578.00

Answer 1

Ans.

1.

Sunshine Interiors
Bank Reconciliation
July 31, 20Y5
Cash balance according to bank statement		$11,601.41
Add:
Deposit of July 31, not recorded by bank		$ 1,177.87
Less:
Outstanding check no. 613	$        137.50
Outstanding Check No. 628	$        837.70
Outstanding Check No. 633	$        310.08	$ 1,285.28
Adjusted balance		$11,494.00
Cash balance according to company's records (see Note)		$ 7,664.00
Add:
Notes and Interest receivable collected by Bank	$     4,160.00
Error in July 23 deposit	$          18.00
Error in recording check no. 627	$          63.00	$ 4,241.00
Less:
Checks returned because of insufficient funds	$        375.00
Service Charges	$          36.00	$     411.00
Adjusted balance		$11,494.00

Note:

Balance of cash in Bank account , July 1	$     9,578.00
Add : Receipts in July	$     6,465.42
Less: Disbursement in July	$     8,379.42
Balance of cash in Bank account , July 31	$ 7,664.00

2.

Date	Particulars	Debit	Credit
20Y5 July 31	Cash	$          4,241.00
	Notes Receivable		$      4,000.00
	Interest Revenue		$          160.00
	Sales		$            18.00
	Accounts Payable		$            63.00
July 31	Accounts Receivable	$              375.00
	Miscellaneous Expenses	$                36.00
	Cash		$          411.00

3.

The amount of cash that should appear on the balance sheet as of July 31 = $ 11,494.00

4.

Treatment :

The error of $ 1,620 ($1,800-$1,80) should be added to the cash as per Bank Statement in Bank Reconciliation.

So the correct ans is : Addition to cash as per Bank Statement

To Correct :

Request the Bank to correct the balance by presenting the cancelled check.

So the correct ans is : Request that the Bank correct the error.