In connection with your audit of the \(A B C\). Company at December 31, 19X0, you were given a bank reconciliation by a company employee which shows balance per bank \(\$ 15,267\), deposits in transit \(\$ 18,923\), checks outstanding \(\$ 21,378\), and balance per books \(\$ 12,817\). As part of your verification you obtain the bank statement and cancelled checks from the bank on January \(15,19 X 1\). Checks issued from January 1 to January \(15,19 X 1\) per the books were \(\$ 11,241\). Checks returned by the bank on January 15 amounted to \(\$ 29,219\). Of the checks outstanding December \(31, \$ 4,800\) were not returned by the bank with the January 15 statement, and of those issued per the books in January \(19 \times 1, \$ 3,600\) were not returned.

Required:

a. Prepare a proof of cash of disbursements per bank and per books for the first fifteen days of January.

b. Suggest four possible explanations of your findings and state what action you would take for each, including any adjusting entry.