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 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

Duplicate Deposit Tickets:
Date and amount of each deposit in July:

CHECKS WRITTEN:
Number and amount of each check issued in July:

July Bank Statement:

THE RECONCILEMENT OF THIS STATEMENT WITH YOUR RECORDS IS ESSENTIAL.
ANY ERROR OR EXCEPTION SHOULD BE REPORTED IMMEDIATELY.

Instructions
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.
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 July 31?
4. Assume that a canceled check for $180 has been incorrectly recorded by the bank as $1,800. Briefly explain how the error would be included in a bank reconciliation and how it should becorrected.

Deduct outstanding checks: $310.10 No. 602.. No. 612._. . 92.50 625.60 9,578.00 9,605.70 27.70 9,578.00 Cash balance according to company's records. . . . . . . . . . CASH ACCOUNT: Balance as of July 1 9,578.00 CASH RECEIPTS FOR MONTH OF JULY 6,465.42 Date July 2 Amount S569.50 701.80 819.24 Date July 12 Amount Date Amount $580.70 July 23 713.45 601.50 1,177.87 16 600.10 19 26 31 9 701.26 Check No. Amount Check No. Check No. Amount 0 $309.50 2 3 2 0 2 Total amount ecks issued in MEMBER FDIC PAGE 1 ACCOUNT NUMBER FROM Y/01/20- BALANCE AMERICAN NATIONAL BANK OF DETROIT TO 7/31/20 9,422.80 6,088.38 7,686.74 DETROIT, MI 48201-2500 (313)933-8547 9 DEPOSITS 20 WITHDRAWALS SUNSHINE INTERIORS 4 OTHER DEBITS AND CREDITS 3,749.0OCR NEW BALANCE 11,601.41 --CHECKS AND OTHER DEBITS-DEPOSITSDATBBALANCE 9,801.00 10,041.5o 10,113.30 10,101.64 10,1 3.37 13,106.86 12,858.20 12,509.87 10,170.31 10,304.46 11,038.91 11,637.41 11,601 41 0r/o1 0r/o3 or/o6 No.580 310.10 No612 92.50 No.802 8.B0 No.614 243.50 No.815 350.10 No.616 279.90 No.617 398.80 No.618 435.40 No.619 20.10 No.620 238.87 Na621 309.0 No.624 707.01 63 No.628 850.03 318.73 No.629 29.00 780.80 569.50 701.80 819.24 580.7 M8 4,000.00 MS 160.00 600.10 07/13 0r/14 07/14 No 823 158.83No No830 882.80 No.631 1,081.56 N8F 373.00 No 632 32540 No.634 241.71 701.26 731.45 601.50 o/20 07/21 07/24 0r/28 0r/31 8C 36.00 BC ERROR CORRECTION MSMISCELLANEOUS NSF-NOT SUFFICIENT FUNDS P PAYMENT STOPPED SCSERVICE CHARGE