The following bank reconciliation was prepared for Dakota Co.

a. Identify the errors in the preceding bank reconciliation.

b. Prepare a corrected bank reconciliation.

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DAKOTA CO. Bank Reconciliation For the Month Ended June 30, 20Y3 Cash balance according to bank statement Add outstanding checks: No. 7715 $22,900 $1,450 7760 915 7764 7765 1,850 775 4,990 $27,890 (6,200) $21,690 Deduct deposit of June 30, not recorded by bank Adjusted balance Cash balance according to company's records Add: Proceeds of note collected by bank: $15,625 Principal $6,000 Interest 360 $6,360 Service charges 30 6,390 $22,015 Deduct: Check returned because of insufficient funds $ 545 2,700 Error in recording June 20 deposit of $5,200 as $2,500 (3,245) $18,770 Adjusted balance