just need help with section b

EverReady Corporation is in the home building and repair business Construction business has been in a slump, and the company has experienced financial difficulty over the past two years. Part of the problem lies in the company's desire to avoid laying off its skilled crews of bricklayers and cabinetmakers. Meeting the payroll has been a problem. The auditors are engaged to audit the 2017 financial statements. Knowing of EverReady's financial difficulty and its business policy. the auditors decided to prepare a schedule of interbank transfers covering the 10 days before and after December 31, which is the company s balance sheet date. First, the auditors used the cash receipts and disbursements journals to prepare part of the schedule shown in Exhibit 6.521. They obtained the information for everything except the dates of deposit and payment in the bank statements (disbursing date per bank and receiving date per bank. The auditors learned that EverReady always transferred money to the payroll account at ist National Bank from the general account at Ist National Bank. This transfer enabled the bank to clear the payroll checks without delay. The only bank accounts in the EverReady financial statements are the two at 1st National Bank Next, the auditors obtained the December 2017 and January 2018 bank statements for the general and payroll accounts at 1st National Bank. They recorded the bank disbursement and receipt dates in the schedule of Interbank transfers. For each transfer, these dates are identical because the accounts are in the same bank. An alert auditor noticed that the 1st National Bank general account bank statement also contains deposits received from Citizen National Bank and canceled check 1799 dated January 5 payable to Citizen National Bank This check cleared the 1st National Bank account on January 8 and was marked "transfer of funds. This led to the auditors' decision to inquire about this of EverReady's chief financial officer EXHIBIT 6.52.1 Schedule of Interbank Transfers Prepared EVERREADY CORPORATION Schedule of Interbank Transfers December 31, 2017 Reviewed Date D ate per Check Date per Bank 18 National 1st National 1st Naronal Disbursing Account Date per Amount Books 10,463 24-Dec 11,533 31 Dec 9.971/ 08 Jan TENTE Receiving Account Date per Bank Books 1st National Payroll 24-Dec 1st National Payroll 31-Dec 1st National Payroll 08 Jan 24-Dec 31-DEC- 31-Dec- wedd and bank.com Asked about the Citizen National Bank transactions, EverReady's chief financial officer readily admitted the existence of an off- books bank account. He explained that it was used for financing transactions in keeping with normal practice in the construction industry. He gave the auditors the December and January bank statements for the account at Citizen National Bank. In itthe auditors found the following cleared Bank Citiren National Bank Payable to Amount Dated e st National $10.000 12,90 28-Dec 40521st National 12,000 30-Dec 4053 Chase Bank 14.000 4- Jan 4054 1st National 20,000 - Jan 31-Dec Received from Amunt 1st National Chase Bank 15,000 10,000 12,000 22-Dec 10-Des es-Jan er Jan When asked about the Chase Bank transactions, EverReady's chief financial officer admitted the existence of another off-books bank account, which he said was the personal account of the principal stockholder. He explained that the stockholder often used it to finance EverReady's operations. He gave the auditors the December and January bank statements for this account at Chase Bank, in 11, the auditors found the following: Cleared Payable to Citizen National Bank Citizen National Bank 15,000 12.000 22-Dec 30-Dec 7-Jan 05-Jan Deposits Received from Dated Amount 12,00 14,000 Citizen National Bank 4-Jan An abbreviated calendar for the period is in Exhibit 6.54.2. EXHIBIT 6.542 December 2017 January 2018 Required: a. Complete the schedule of Interbank Transfers (document C-5 Exhibit 6.52.1) by entering the new information Prepared EVERREADY CORPORATION Schedule of Interbank Transfers December 31, 2017 Reviewed Date Receiving Account Date per Disbursing Account Bank Amount Date per Bank Date per Bank en National Bank Chase Bank Clien National Bank 1st National Chen National Bank 10,000 10.463 24-Dec 12,000 24-Dec 28-Dec 29-Dec 24 Dec 31-Dec 05 Jan 05-Jan 1st National Payroll Chase Bank Citizen National Bank 22-Dec 23-Dec 24 Dec 28-Dec 30 Dec 30-Dec Chase Bank 15.000 Cizen National Bank 11,593 31-Dec 31-Dec 31-Dec Chien National Bank 04an Citizen National Bank 1st National 9,971 08-Jan b. What is the actual cash balance for the three bank accounts combined considering only the amounts given in this case information as of December 31, 2017 before any of the December 31 payrol checks are cashed by employees) As of January 8, 2018 before any of the January 8 payroll checks are cashed by employees? Leave no cells blank.be certain to enter"0" wherever required. Negative amounts or amounts to be deducted should be indicated by a minus sign.) Chase Bank B ank1 Ac Chiren National Bank Bank Actual Check 1st National Bank Actual 1st Nat'l Payroll Bank A ctual2 Combined A ctuat Bank Dec 22 (lue] Dec 23 (Wed) Dec 24 (hu) Dec 28 (Mon) Dec 30 (Wed) | | | | (a) Balances Payroll Checks Jan 4 (Mon) Jan 5 (Tue) Jan 5 (Tue Jan (hu) Negative amounts of amounts to be deducted should be indicated by a minus sign EverReady Corporation is in the home building and repair business Construction business has been in a slump, and the company has experienced financial difficulty over the past two years. Part of the problem lies in the company's desire to avoid laying off its skilled crews of bricklayers and cabinetmakers. Meeting the payroll has been a problem. The auditors are engaged to audit the 2017 financial statements. Knowing of EverReady's financial difficulty and its business policy. the auditors decided to prepare a schedule of interbank transfers covering the 10 days before and after December 31, which is the company s balance sheet date. First, the auditors used the cash receipts and disbursements journals to prepare part of the schedule shown in Exhibit 6.521. They obtained the information for everything except the dates of deposit and payment in the bank statements (disbursing date per bank and receiving date per bank. The auditors learned that EverReady always transferred money to the payroll account at ist National Bank from the general account at Ist National Bank. This transfer enabled the bank to clear the payroll checks without delay. The only bank accounts in the EverReady financial statements are the two at 1st National Bank Next, the auditors obtained the December 2017 and January 2018 bank statements for the general and payroll accounts at 1st National Bank. They recorded the bank disbursement and receipt dates in the schedule of Interbank transfers. For each transfer, these dates are identical because the accounts are in the same bank. An alert auditor noticed that the 1st National Bank general account bank statement also contains deposits received from Citizen National Bank and canceled check 1799 dated January 5 payable to Citizen National Bank This check cleared the 1st National Bank account on January 8 and was marked "transfer of funds. This led to the auditors' decision to inquire about this of EverReady's chief financial officer EXHIBIT 6.52.1 Schedule of Interbank Transfers Prepared EVERREADY CORPORATION Schedule of Interbank Transfers December 31, 2017 Reviewed Date D ate per Check Date per Bank 18 National 1st National 1st Naronal Disbursing Account Date per Amount Books 10,463 24-Dec 11,533 31 Dec 9.971/ 08 Jan TENTE Receiving Account Date per Bank Books 1st National Payroll 24-Dec 1st National Payroll 31-Dec 1st National Payroll 08 Jan 24-Dec 31-DEC- 31-Dec- wedd and bank.com Asked about the Citizen National Bank transactions, EverReady's chief financial officer readily admitted the existence of an off- books bank account. He explained that it was used for financing transactions in keeping with normal practice in the construction industry. He gave the auditors the December and January bank statements for the account at Citizen National Bank. In itthe auditors found the following cleared Bank Citiren National Bank Payable to Amount Dated e st National $10.000 12,90 28-Dec 40521st National 12,000 30-Dec 4053 Chase Bank 14.000 4- Jan 4054 1st National 20,000 - Jan 31-Dec Received from Amunt 1st National Chase Bank 15,000 10,000 12,000 22-Dec 10-Des es-Jan er Jan When asked about the Chase Bank transactions, EverReady's chief financial officer admitted the existence of another off-books bank account, which he said was the personal account of the principal stockholder. He explained that the stockholder often used it to finance EverReady's operations. He gave the auditors the December and January bank statements for this account at Chase Bank, in 11, the auditors found the following: Cleared Payable to Citizen National Bank Citizen National Bank 15,000 12.000 22-Dec 30-Dec 7-Jan 05-Jan Deposits Received from Dated Amount 12,00 14,000 Citizen National Bank 4-Jan An abbreviated calendar for the period is in Exhibit 6.54.2. EXHIBIT 6.542 December 2017 January 2018 Required: a. Complete the schedule of Interbank Transfers (document C-5 Exhibit 6.52.1) by entering the new information Prepared EVERREADY CORPORATION Schedule of Interbank Transfers December 31, 2017 Reviewed Date Receiving Account Date per Disbursing Account Bank Amount Date per Bank Date per Bank en National Bank Chase Bank Clien National Bank 1st National Chen National Bank 10,000 10.463 24-Dec 12,000 24-Dec 28-Dec 29-Dec 24 Dec 31-Dec 05 Jan 05-Jan 1st National Payroll Chase Bank Citizen National Bank 22-Dec 23-Dec 24 Dec 28-Dec 30 Dec 30-Dec Chase Bank 15.000 Cizen National Bank 11,593 31-Dec 31-Dec 31-Dec Chien National Bank 04an Citizen National Bank 1st National 9,971 08-Jan b. What is the actual cash balance for the three bank accounts combined considering only the amounts given in this case information as of December 31, 2017 before any of the December 31 payrol checks are cashed by employees) As of January 8, 2018 before any of the January 8 payroll checks are cashed by employees? Leave no cells blank.be certain to enter"0" wherever required. Negative amounts or amounts to be deducted should be indicated by a minus sign.) Chase Bank B ank1 Ac Chiren National Bank Bank Actual Check 1st National Bank Actual 1st Nat'l Payroll Bank A ctual2 Combined A ctuat Bank Dec 22 (lue] Dec 23 (Wed) Dec 24 (hu) Dec 28 (Mon) Dec 30 (Wed) | | | | (a) Balances Payroll Checks Jan 4 (Mon) Jan 5 (Tue) Jan 5 (Tue Jan (hu) Negative amounts of amounts to be deducted should be indicated by a minus sign