Question
he following bank reconciliation was prepared as of June 30, 20Y7: Poway Co. Bank Reconciliation For the Month Ended June 30, 20Y7 Cash balance according
he following bank reconciliation was prepared as of June 30, 20Y7:
| Poway Co. | |||||
| Bank Reconciliation | |||||
| For the Month Ended June 30, 20Y7 | |||||
| Cash balance according to bank statement | $15,690 | ||||
| Add: Outstanding Check No. 1067 | $570 | ||||
| Outstanding Check No.1106 | 450 | ||||
| Outstanding Check No.1110 | 1,000 | ||||
| Outstanding Check No.1113 | 950 | ||||
| Total additions | 2,970 | ||||
| Deduct: Deposit of June 30 not recorded by bank | (7,000) | ||||
| Adjusted balance | $11,660 | ||||
| Cash balance according to companys records | $8,790 | ||||
| Add: Proceeds of note collected by bank: Face value | $7,000 | ||||
| Proceeds of note collected by bank: Interest | 350 | ||||
| Service charges | 20 | ||||
| Total additions | 7,370 | ||||
| Deduct: Check returned because of insufficient funds | $900 | ||||
| Error in recording June 17 deposit of $7,250 as $2,750 | 4,500 | ||||
| Total deductions | (5,400) | ||||
| Adjusted balance | $10,760 | ||||
Question Content Area
Question Content Area
b. Prepare a corrected bank reconciliation.
| Cash balance according to bank statement | debit | credit |
| Add: Deposit in transit on June 30 Deduct: Deposit in transit on June 30 Outstanding Check No. 1067 Outstanding Check No. 1106 Outstanding Check No. 1110 Add: Deposit in transit on June 30 | ||
| Check returned because of insufficient funds Deposit of June 30, not recorded by bank Service charges Add: Outstanding Check No. 1067 Deduct: Outstanding Check No. 1067 Deposit of June 30, not recorded by bank | ||
| Check returned because of insufficient funds Deposit of June 30, not recorded by bank Error in recording June 17 deposit as $2,750 instead of $7,250 Proceeds of note collected by bank: Interest Outstanding Check No. 1106 Outstanding Check No. 1106 | ||
| Check returned because of insufficient funds Deposit of June 30, not recorded by bank Proceeds of note collected by bank: Face value Proceeds of note collected by bank: Interest Outstanding Check No. 1110 Outstanding Check No. 1110 | ||
| Deposit of June 30, not recorded by bank Proceeds of note collected by bank: Face value Proceeds of note collected by bank: Interest Service charges Outstanding Check No. 1113 Outstanding Check No. 1113 | ||
| Total deductions | ||
| Adjusted balance | ||
| Cash balance according to company's records | ||
| Add: Note collected by bank, including $350 interest Deduct: Note collected by bank, including $350 interest Outstanding Check No. 1067 Outstanding Check No. 1106 Outstanding Check No. 1113 Add: Note collected by bank, including $350 interest | ||
| Add: Note collected by bank, including $350 interest Deduct: Note collected by bank, including $350 interest Error in recording June 17 deposit as $2,750 instead of $7,250 Outstanding Check No. 1067 Outstanding Check No. 1106 Error in recording June 17 deposit as $2,750 instead of $7,250 | ||
| Total additions | ||
| Add: Check returned because of insufficient funds Deduct: Check returned because of insufficient funds Outstanding Check No. 1067 Outstanding Check No. 1106 Outstanding Check No. 1110 Deduct: Check returned because of insufficient funds | ||
| Bank service charges Outstanding Check No. 1067 Outstanding Check No. 1106 Outstanding Check No. 1110 Outstanding Check No. 1113 Bank service charges | ||
| Total deductions | ||
| Adjusted balance |
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Fraud Examination Investigative And Audit Procedures
Authors: Joseph T. Wells
1st Edition
089930639X, 978-0899306391
