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The cash account for Inky's Bike Co. at July 1, 2015, indicated a balance of $12,470. During July, the total cash deposited was $26,680, and checks written totaled $31,500. The bank statement indicated a balance of $16,750 on July 31. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items: a. Checks outstanding totaled $12,850 b. A deposit of $5, 100, representing receipts of July 31, had been made too late to appear on the bank statement c. The bank had collected for Inky's Bike co. $2,675 on a note left for collection. The face of the note was $2,500. d. A check for $370 returned with the statement had been incorrectly charged by the bank as $730 e. A check for $320 returned with the statement had been recorded by Inky's Bike Co. as $230. The check was for the payment of an obligation to Ranchwood Co. on account. f. Bank service charges for July amounted to $25. g. A check for $850 from Hallock Co. was returned by the bank because of insufficient funds. Instructions 1. Prepare a bank reconciliation as of July 31. BANK TO BOOK Cash Balance on Bank Statement 7/31: $16,750 Adjustments to Add: Adjustments to Deduct: +/- Bank errors Adjusted Balance: BOOK TO BANK: Cash Balance in Depositor's G/L Records 7/31: Adjustments to Add: Adjustments to Deduct: +/- Depositor's errors: Adjusted Balance: Note: Adjusted Balance on Bank side should equal Adjusted Balance on Book side on July 31. CALCULATE G/L CASH ACCOUNT BALANCE AT END OF MONTH: Cash Balance July 1: 12.470 Cash deposits in July: Total Cash Balance: Less checks written in July Cash Balance 7/31: (to be entered above)

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