a) After completing Exercise TWO, what is the correct Adjusted balance per the Books? See circle on the printed exercise. Note: This adjusted balance should match the Adjusted Balance per the Bank.

b) Does it make sense for the same person who prepares the daily cash deposits for the company to also perform the monthly bank reconciliation (in your answer, be sure to name any specific internal control procedures that may be applicable)?

c) Describe the different types of audit opinions.

EXERCISE TWO: BANK RECONCILIATION The June 30th, balance per bank statement was $6,100. The cash balance per books was $8,140. Outstanding checks amounted to $850, and deposits in transit were $2,500. The bank statement contained an NSF check for $550, a service charge for $25, and a debit memo for direct payment of the telephone bill of $175. In addition, it was discovered that a check to pay for utilities was correctly written and paid by the bank for $150, but was recorded on the books as $510. 1) Prepare a bank reconciliation at June 30th. 2) Prepare any necessary journal entries. Reg. 1 Bank Reconciliation June 30th BANK: Balance, June 30 Add: Less: Adjusted Balance, June 30 1$ BOOKS: Balance, June 30 1$ Add Less: Adjusted Balance, June 30 Req. 2 Date Journal Entries Accounts Debit Credit June 30 30 30 30 Preview File Edit View Go Tools Window Help Q2 Thu Feb 18 7:19 PM AN Journal-Principles-Ch 6.pdf Page 1 of 6 Search Journal - Principles-Ch 6... ACG 2021 CHAPTER 6. EXERCISE EXERCISE ONE: Bank Reconciliation Example Try completing a bork reconciliation for Carwig Corp. Using the nomaton below. The records on form ia on the nece. Thein aur the page folkowing the form. Try to look at the solution fra Statewide Savings Bank Acount: 588-4440-45 Bank Statement Data: October 31, 20xx Ending Balance October 31st S 10.410.00 Checks and Debits Deposits and Credits Check No. Amount Date Aunount 583 48.00 15-06 4.000,00 584 720.00 22-01 2.850,00 585 405.00 27-O 1.400.00 588 85.00 AR-CM 1,200.00 588 67.00 Svc. Chrge-DM 15.00 NSF-DM 135.00 15.00 Fokwing als drecka and cocita recorded on Cartie's booka Checks Deposits Number Amount Dale Amount 583 48.CO 4,000.00 584 720.00 22-Oct 2.650.00 585 450.00 27-O 1,400,00 588 85.CO 31-0 1.885.00 587 800.00 588 87.CO 589 452.CO Other Information: 1) The cash balance showing on Cartwrighe's books os of October 31st 5085B 2) Check number 5 st corectly witten and recorded by the bank for $100.housser it was recorded on Carw ghis books for $450. The neck was to pay utiles pense. 3} The Debit Merto DM was for bank to charges. Cartwright records and charges to the Macellor Ecense CCOUL 4 Achockproous y posted by Cartwrigh was stumed ( Otor NGF 5135 The check was from Bleve Smilin payment of his coul. G) The Credt Merro (CM) was for the colocon of an accons rochable balance from che of Cartwights Stay ahead in class with practice exams HE G 18 stv A Preview File Edit View Go Tools Window Help Q2 Thu Feb 18 7:19 PM AN Journal-Principles-Ch 6.pdf Page 2 of 6 Search Journal - Principles-Ch 6... BANK RECONCILIATION Bank Reconciliation October 31st BANK: : Balance, October 31st IS Add: Less Adjusted Balance, October 313 BOOKS Balance, October 31st IS Add: LAN: Adjusted Balance, October 31 IS Ray, Journal Entries Accounts Debit Credii Date October 31 31 31 31 Premier Stay ahead in class with practice exams HE G 18 tv A Preview File Edit View Go Tools Window Help Q2 Thu Feb 18 7:19 PM AN Journal-Principles-Ch 6.pdf Page 3 of 6 D Search Journal - Principles-Ch 6... BANK RECONCILIATION- SOLUTION Bank Reconciliation October 31st BANK: Balance October 31st , Add: Deposits in transit 31-Oct 510,410 1,865 Les Outstanding checks: #567 ASAD Adjusted Balance, October 31 1800) 1452) 511,023 BOOKS Balance, October Stat $9.B Add: Correction of Error A'R collected 45 1,280 Le: Bank service charge NSF Check (15) (135) Adjusted Balance, October 511,023 Ray, Journal Entries Date Accounts October 31 Cash Utilities Expense Debit Credit 401 45 15 31 Miscellaneous Expense Cash . 15 31 Accounts Receivable 135 Cash 135 31 cash 1 Accounts Receivable 1,260 1,260 Premier Stay ahead in class with practice exams HE G 18 stv A EXERCISE TWO: BANK RECONCILIATION The June 30th, balance per bank statement was $6,100. The cash balance per books was $8,140. Outstanding checks amounted to $850, and deposits in transit were $2,500. The bank statement contained an NSF check for $550, a service charge for $25, and a debit memo for direct payment of the telephone bill of $175. In addition, it was discovered that a check to pay for utilities was correctly written and paid by the bank for $150, but was recorded on the books as $510. 1) Prepare a bank reconciliation at June 30th. 2) Prepare any necessary journal entries. Reg. 1 Bank Reconciliation June 30th BANK: Balance, June 30 Add: Less: Adjusted Balance, June 30 1$ BOOKS: Balance, June 30 1$ Add Less: Adjusted Balance, June 30 Req. 2 Date Journal Entries Accounts Debit Credit June 30 30 30 30 Preview File Edit View Go Tools Window Help Q2 Thu Feb 18 7:19 PM AN Journal-Principles-Ch 6.pdf Page 1 of 6 Search Journal - Principles-Ch 6... ACG 2021 CHAPTER 6. EXERCISE EXERCISE ONE: Bank Reconciliation Example Try completing a bork reconciliation for Carwig Corp. Using the nomaton below. The records on form ia on the nece. Thein aur the page folkowing the form. Try to look at the solution fra Statewide Savings Bank Acount: 588-4440-45 Bank Statement Data: October 31, 20xx Ending Balance October 31st S 10.410.00 Checks and Debits Deposits and Credits Check No. Amount Date Aunount 583 48.00 15-06 4.000,00 584 720.00 22-01 2.850,00 585 405.00 27-O 1.400.00 588 85.00 AR-CM 1,200.00 588 67.00 Svc. Chrge-DM 15.00 NSF-DM 135.00 15.00 Fokwing als drecka and cocita recorded on Cartie's booka Checks Deposits Number Amount Dale Amount 583 48.CO 4,000.00 584 720.00 22-Oct 2.650.00 585 450.00 27-O 1,400,00 588 85.CO 31-0 1.885.00 587 800.00 588 87.CO 589 452.CO Other Information: 1) The cash balance showing on Cartwrighe's books os of October 31st 5085B 2) Check number 5 st corectly witten and recorded by the bank for $100.housser it was recorded on Carw ghis books for $450. The neck was to pay utiles pense. 3} The Debit Merto DM was for bank to charges. Cartwright records and charges to the Macellor Ecense CCOUL 4 Achockproous y posted by Cartwrigh was stumed ( Otor NGF 5135 The check was from Bleve Smilin payment of his coul. G) The Credt Merro (CM) was for the colocon of an accons rochable balance from che of Cartwights Stay ahead in class with practice exams HE G 18 stv A Preview File Edit View Go Tools Window Help Q2 Thu Feb 18 7:19 PM AN Journal-Principles-Ch 6.pdf Page 2 of 6 Search Journal - Principles-Ch 6... BANK RECONCILIATION Bank Reconciliation October 31st BANK: : Balance, October 31st IS Add: Less Adjusted Balance, October 313 BOOKS Balance, October 31st IS Add: LAN: Adjusted Balance, October 31 IS Ray, Journal Entries Accounts Debit Credii Date October 31 31 31 31 Premier Stay ahead in class with practice exams HE G 18 tv A Preview File Edit View Go Tools Window Help Q2 Thu Feb 18 7:19 PM AN Journal-Principles-Ch 6.pdf Page 3 of 6 D Search Journal - Principles-Ch 6... BANK RECONCILIATION- SOLUTION Bank Reconciliation October 31st BANK: Balance October 31st , Add: Deposits in transit 31-Oct 510,410 1,865 Les Outstanding checks: #567 ASAD Adjusted Balance, October 31 1800) 1452) 511,023 BOOKS Balance, October Stat $9.B Add: Correction of Error A'R collected 45 1,280 Le: Bank service charge NSF Check (15) (135) Adjusted Balance, October 511,023 Ray, Journal Entries Date Accounts October 31 Cash Utilities Expense Debit Credit 401 45 15 31 Miscellaneous Expense Cash . 15 31 Accounts Receivable 135 Cash 135 31 cash 1 Accounts Receivable 1,260 1,260 Premier Stay ahead in class with practice exams HE G 18 stv A