Pacific Furniture Company 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 June 30 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.

JUNE BANK STATEMENT:

CASH ACCOUNT:
Balance as of June 1 .................$9,317.40
CASH RECEIPTS FOR MONTH OF JUNE ........$9,565.31

Instructions
1. Prepare a bank reconciliation as of June 30. 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.
2. Journalize the necessary entries. The accounts have not been closed.
3. What is the amount of Cash that should appear on the balance sheet as of June 30?
4. Assume that a canceled check for $390 has been incorrectly recorded by the bank as $930. Briefly explain how the error would be included in a bank reconciliation and how it should becorrected.

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PAGE1 MEMBER FDIC ACCOUNT NUMBER FROM 6/01/20- TO 6/30/20 BALANCE AMERICAN NATIONAL BANK OF DETROIT DETROIT, MI 48201-2500 (313)933-8547 9,447 20 8,691.77 7,345.91 9 DEPOSITS 20 WITHDRAWALS PACIFIC FURNITURE COMPANY 4 OTHER DEBITS AND CREDITS 2,298.7OCR NEW BALANCE 13,091.76 No.71 162.15 No.739 No.741 495.15 No.743 671.30 No.745 117.25 690.25 1.080.50 854.17 840.50O No.T46 298.66 M8 2.500.00 No.748 450.90 No.749 640.13M8 125.00 896.61 882.95 1,606.74 897.34 942.71 6/01 6/02 6/04 6/09 6/09 6/09 No.T38 251.40 No.740 237.50 No.742 501.90 No.744 508.88 9,723.90 10,506.35 10,363.47 10,023.79 12,109.88 11,145.85 11.464.32 11,429.31 12,472.35 12,475.35 13,418.06 13,126.16 13,091.76 60.35 No.750 276.77No.751 299.37 No.T53 80.95 No.754 449.75 No.756 113.95 No.T60 48.9 6/16 8/18 8/23 8/25 8/28 8/30 No.752 537.01 No.757 407.95 NSF 291.90 8c 34.40 ECERROR CORRECTION ODOVERDRAFT P8PAYMENT STOPPED 80- 8HRVICE CHARGE NSF-NOT SUFFICIENT FUNDS THE RECONCILEMENT OF THIS STATEMENT WITH YOUR RECORDS IS ESSENTIAL ANY ERROR OR EXCEPTION BHOULD BE REPORTED IMMEDIATELY DUPLICATE DEPOSIT TICKETS Date and amount of each deposit in June Date Amount Date Amount Amount $1,080.50 854.17 840.50 S 896.61 882.95 1,660.47 S 897.34 942.71 1,510.06 June 1 une June 22 15 17 30 CHECKS WRITTEN Number and amount of each check issued in June Check No. Amount Check No. Amount Check No. Amount 740 741 742 743 744 745 746 $237.50 495.15 501.90 671.30 506.88 117.25 298.66 747 748 749 750 751 752 753 Void $450.90 640.31 276.77 299.37 537.01 380.95 754 755 756 757 758 759 760 449.75 272.75 113.95 407.95 259.60 901.50 486.39 Total amount of checks issued in June $8,305.84 BANK RECONCILIATION FOR PRECEDING MONTH: Pacific Furniture Company Bank Reconciliation May 31, 20- Cash balance according to bank statement.......... Add deposit for May 31, not recorded by bank 9,447.20 690.25 $10,137.45 Deduct outstanding checks: 739 60.55 820.05 9,317.40 9,352.50 35.10 9,317.40 Cash balance according to depositor's records.. Adjusted balance