Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ist, the January bank reconciliation doesn't clation because he had notified the bank to stop payment on them and he ra on the reconciliation because

image text in transcribed
image text in transcribed
Ist, the January bank reconciliation doesn't clation because he had notified the bank to stop payment on them and he ra on the reconciliation because he had notified the bank to stop payment on them and he he Cashier (who works I LaVE DEh outstanding for a long time. The cashier told me that these checks ind needn 't had made the o appearary adjustment on the books. Does that sound reasonable to you? h, Kate shows you the following (unaudited) January 31, 2016, bank reconciliation At your requet,Kment by the cashier: n the pro- , identify You may iples will KATE'S CARDS January 31, 2016 4,843.69 Balance from general ledger Bank Reconcililation balance from bank stat Deposits in transit recorded $10,893.89 7238.40 $12,082.09 ring the e com- Less Bank service charge.... Unrecorded credit...1200.00 (1.260 $ 60.00 sales. s to be 2351$1,100.20 578.32 No.2359 No 2354 969.68 (2.448.20 $9,633.89 Reconciled cash balance.. $ 9,633.89 eanciled cash balance You discover that the $1,200 unrecorded bank credit represents a note collected by the bank on Kate's behalf, it appears in the deposits column of the January bank statement. Your investigation also ereals that the December 31, 2015, bank reconciliation showed three checks that had been outstanding longer than 10 months: No. 1432 for $600, No. 1458 for $466.90, and No. 1512 for $253.10. You also discover that these items were never added back into the Cash account in Kate's books. In confirming that the checks shown on the cashier's January 31 bank reconciliation were outstanding on that date, you discover that check No. 2353 was actually a payment of S1,658.32 and had been recorded on the ndi- e of To confirm the amount of undeposited receipts at January 31, you request a bank statement for February 1-12 (called a cutoff bank statement). This indeed shows a January 1 deposit of $7.238.40. books for that amount

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Forensic And Investigative Accounting

Authors: D. Larry Crumbley, Lester E. Heitger, Stevenson Smith

5th Edition

0808026879, 9780808026877

More Books

Students also viewed these Accounting questions

Question

Explain the importance of Human Resource Management

Answered: 1 week ago

Question

Discuss the scope of Human Resource Management

Answered: 1 week ago

Question

Discuss the different types of leadership

Answered: 1 week ago

Question

Write a note on Organisation manuals

Answered: 1 week ago