pOlna i nJ.a nuary 10 Susan Jones wrote a check for $500 and mailed it to Joe

Question:

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?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Accounting The Basis For Business Decisions

ISBN: 9780070415515

5th Edition

Authors: Robert F. Meigs, Walter B Meigs

Question Posted: