EX 7-22 Bank reconciliation
Identify the errors in the following bank reconciliation:
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Poway Co. |
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Cash balance according to bank statement |
$16,185 |
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Add outstanding checks: |
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No. 1067 |
$ 575 |
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1106 |
470 |
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1110 |
1,050 |
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1113 |
910 |
3,005 |
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$19,190 |
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Deduct deposit of June 30, not recorded by bank |
6,600 |
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Adjusted balance |
$12,590 |
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Cash balance according to company’s records |
$ 8,985 |
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Add: Proceeds of note collected by bank: |
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Principal |
$6,000 |
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Interest |
300 |
$6,300 |
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Service charges |
15 |
6,315 |
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|
$15,300 |
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Deduct: Check returned because of insufficient funds |
$ 890 |
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Error in recording June 17 deposit of $7,150 as $1,750 |
5,400 |
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Adjusted balance |
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