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Financial Accounting Sarbanes-Oxley Internal Control and Cash Problem 1. The cash account for Santiago Company on May 31, 2020 indicated a balance of $15,515.00. The

Financial Accounting

Sarbanes-Oxley Internal Control and Cash

Problem 1.

The cash account for Santiago Company on May 31, 2020 indicated a balance of $15,515.00. The March bank statement indicated an ending balance of $20,245.00. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items:

a.

Checks outstanding totaled $4,820.00

b.

A deposit of $3,796.00 had been made too late to appear on the bank statement.

c.

A check for $1,233.00 returned with the statement had been incorrectly recorded by Santiago Company as $233.00. The check was originally credited to accounts payable.

d.

The bank collected $5,541.00 on a note left for collection.

e.

Bank service charges for May amounted to $45.00.

f.

A check for $790.00 was returned by the bank because of insufficient funds.

  • Prepare a bank reconciliation as of May 31, 2020. Create a proper heading and label everything.
  • Journalize the necessary entries (general journal provided below).

If a balance sheet were prepared for Santiago Company on May 31, 2020, what amount should be reported as cash?

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