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La Casa Interiors deposits all cash receipts each Wednesday and Friday in a night depository, after banking hours. The data…

La Casa 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. Instructions: Hide 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. La Casa Interiors Bank Reconciliation July 31, 20– Cash balance according to bank statement $ $ $ Adjusted balance $ Cash balance according to company’s records $ $ $ $ Adjusted balance $ Hide 2. Journalize the necessary entries. The accounts have not been closed. When required, enter amounts in dollars and cents. If an amount box does not require an entry, leave it blank or enter “0”. 3. What is the amount of Cash that should appear on the balance sheet as of July 31? Enter amount in dollars and cents. $ 4. Assume that a canceled check for $325 has been incorrectly recorded by the bank as $3,250. Briefly explain how the error would be included in a bank reconciliation and how it should be corrected. Treatment SelectNot included in a bank reconciliationAddition to cash per depositor’s recordsDeduction from cash per bank statementDeduction from cash per depositor’s recordsAddition to cash per bank statement To correct SelectJournalize a correcting entry adding $6,280 to cashJournalize an entry deducting $3,600 from cashRequest that the bank correct the errorJournalize an entry adding $3,600 to cashJournalize an entry deducting $6,280 from cash



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