pOlna i nJ.a nuary 10 Susan Jones wrote a check for $500 and mailed it to Joe Smith in payment of a debt. On January 25, Smith called and asked to be paid, stating that no check had been received. Jones placed a stop payment order with her bank and wrote another check which she delivered personally to Smith. LO6 a What information should Jones have given the bank in connection with the stop payment order in order that the bank could guard against paying the first check?

b In preparing a bank reconciliation at January 31, should Jones include on the outstanding check list the check on which payment had been stopped? Ex¬

c pIfl a tihne. first check was presented to the bank by a third person on February 15 and was cashed by the bank despite the existence of the stop payment order, would the loss fall on Jones, Smith, or the bank?