Sunshine Interiors deposits all Coins, currency (paper money), checks, money ord

Question

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.

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.

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.

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.

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

Explanation / Answer

Answer 1. SUNSHINE INTERIORS Bank Recocilation JULY 31, 20Y0 Bank's Cash Balance Company's Cash Balance Per Bank Statement          11,601.41 Per General Ledger         7,664.00 Add: Add: Deposit of Sep 30, not recorded by bank            1,177.87 Error in recording check No. 627 - ($381.73 - $318.73)                   63.00 Error in recording Deposits - ($731.45 - $713.45)                   18.00 Proceeds of Notes collected by bank             4,000.00 Interest Collected                160.00         4,241.00          12,779.28      11,905.00 Less: Less: Outstanding Checks: Bank Service Charges                (36.00) Chq # 613                (137.50) NSF Check              (375.00)          (411.00) Chq # 628                (837.70) Chq # 633                (310.08)          (1,285.28) Bank Balance after Reconcilation          11,494.00 Company Balance per Reconcilation      11,494.00 Answer 2. Journal Entry Date Particulars Dr. Amt.   Cr. Amt. 31-Jul Cash                                                           4,160.00    Notes Receivables    4,000.00    Interest Revenue       160.00 (To record note collection) 31-Jul Accounts Receivable          375.00    Cash       375.00 (To Charge account for NSF check plus fee) 31-Jul Cash            63.00    Accounts Payable          63.00 (To correct an entry error - Chk # 627) 31-Jul Cash            18.00    Accounts Receivable          18.00 (To correct an entry error of deposits) 31-Jul Bank Charges            36.00    Cash          36.00 (To record the bank service charges) No entry is Recorded for 1 Deposit in Transit 2 Outstanding Checks 3 Bank errors Answer 3. Cash shown in Balance Sheet on Jul-31    11,494.00 Answer 4. In Bank Reconciliation: Cash Balance as per Bank XXX Add: Error in recording Chk - ($1,800 - $180)      1,620.00 Bank Balance after Reconcilation XXX No Journal Entry will be passed in Company Records.

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