Chapter 06 Exercise 53 LO 6-5

The auditors of Steffey Ltd., decided to study the cash receipts and disbursements for the month of July of the current year under audit. They obtained the bank reconciliations and the cash journals prepared by the company accountants, which revealed the following:

June 30: Bank balance, $355,001; deposits in transit, $86,899; outstanding checks, $42,690; general ledger cash balance, $399,210.

July 1 - July 31: Cash receipts journal, $650,187, cash disbursements journal, $565,397.

July 31: Bank balance, $506,100; deposits in transit, $51,240; outstanding checks, $73,340; general ledger cash balance, $484,000. Bank statement record of deposits: $835,846; of payments: $684,747.

Required:

a.	Prepare a four-column proof of cash covering the month of July of the current year.(Negative amounts or amounts to be deducted should be indicated by a minus sign.)

		Month of July
	Balance June 30	Deposits	Payments	Balance July 31
Bank statement amounts	$	$	$	$
Deposits in transit
June 30
July 31
Outstanding checks
June 30
July 31
Unrecorded deposit
Unrecorded disbursement
General ledger amounts	$	$	$	$

b.	Does the proof of cash reveal any problem(s)?
	No Yes