Financial Accounting Principles

Assessment 3: Internal Control and Accounting for Assets Worksheet

Use this worksheet to complete the following three exercises for Assessment 3. Refer to the instructions in the course for submitting your assessment.

Exercise 3-1

The Scheiffer Companys most recent bank statement and book balances of cash reconciliations were completed on September 30, 2012. Two checks were reported outstanding: check #6798 for $1135.50 and check #6794 for $524.00. The following information is available for the October 31, 2012 reconciliation.

Section of the October 31 Bank Statement

Previous Balance	Total Checks & Deposits	Total Deposits & Credits	Current Balance
16,345.50	9,695.55	11,146.85	17,796.80

Checks and Debits				Deposits and Credits			Daily Balance
Date	No.	Amount		Date	Amount		Date	Amount
10/02	6798	1,135.50		10/04	1,214.50		09/30	16,345.50
10/05	7002	815.00		10/11	2,054.55		10/02	15,210.00
10/09	7001	1,788.50		10/20	3,990.25		10/04	16,424.50
10/15		605.75	NSF	10/23	2,436.80		10/05	15,609.50
10/19	7004	954.00		10/29	20.75	IN	10/09	13,821.00
10/22	7003	405.35		10/29	1,430.00	CM	10/11	15,875.55
10/25	7005	1,985.95					10/15	15,269.80
10/26	7007	310.35					10/19	14,315.80
10/30	7009	1,695.15					10/20	18,306.05
							10/22	17,900.70
							10/23	20,337.50
							10/25	18,351.55
							10/26	18,041.20
							10/29	19,491.95
							10/30	17,796.80

From Scheiffers Accounting Records

Cash Receipts Deposited
Date			Cash Debit
Oct	4		1,214.50
	11		2,054.55
	20		3,990.25
	23		2,436.80
			9,696.10

Cash Disbursements
Check No.		Cash Credit
7001		1,788.50
7002		815.00
7003		405.35
7004		954.00
7005		1,955.95
7006		880.50
7007		310.35
7008		325.10
7009		1,695.15
		9,129.90

Cash				Account #101
Date		Explanation	PR		Debit	Credit	Balance
Sep	30	Balance					14,686.00
Oct	31	Total receipts	R12		9,696.10		24,382.10
	31	Total disbursements	D23			9,129.90	15,252.20

Check #7005 was drawn correctly for $1985.95 to pay for office equipment. The recordkeeper recorded it as a debit for Office Equipment and a credit to Cash for $1955.95, but misread the amount of the check, which was $1985.95. The non-sufficient funds check for a $605.75 account payment was received from a customer, A. B. Fransen. The company has not yet recorded the returned check. The credit memo is the banks collection on a $1450.00 note and shows the deduction of a $20.00 collection fee. The company has not recorded the collection or the fee.

Based on the information provided, complete the following tasks:

Prepare an October 31, 2012, bank reconciliation for the Scheiffer Company.

SCHEIFFER COMPANY

Bank Reconciliation

October 31, 2012

[Create the bank reconciliation here.]