Acme Corporation is a publicly listed company ACMEs Fiscal year end is December 31 In addition to the cash account being reconcile here; ACME has a separate Revolving Credit account. This is a revolving credit facility where interest is accrued on the average balance outstanding during the month. The interest amount is required to be paid on a monthly basis. The correct is amount calculated and taken from the account automatically by the bank. The facility has an annual interest rate of 4% Management has set-out in the Financial Statements that the average balance outstanding in this revolving credit facility is normally at around $ 150,000. The Audit Committee has also informed the Partner that the CRA audited ACME in the previous year and levied a penalty of $50,000 and has informed the Board that they plan continue their audit in the new year.

Part 1 a) From the information provided in EXHIBIT A, perform and document a Bank Reconciliation. - 20 marks b) From the Background info. provided above, identify potential errors and disclosure requirements - 5 marks Part 2 a) Identify the financial assertions relating to the Cash account addressed by the Bank Reconciliation and explain how. 5 marks b) Identify what type of activity the Bank Reconciliation is. 5 marks c) Identify the 6 possible characteristics (of the activity above) and which apply to the Bank Rec