Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On June 30, Sheffield Corporation showed a cash balance on their books of $10,971. The bank statement from the company's bank showed a month end

image text in transcribed
On June 30, Sheffield Corporation showed a cash balance on their books of $10,971. The bank statement from the company's bank showed a month end balance of $14,323. On reviewing the bank statement, the following items were discovered: 1. A deposit made on June 29 for $1.700 did not appear on the bank statement 2. Cheques written in the month of June but that did not appear on the bank statement were as follows: Cheque # 159 $1,350 Cheque # 160 28 Cheque # 168 212 Cheque # 170 310 Cheque # 171 1,160 3. The bank credited Sheffield's account for $330 on June 19. This deposit did not belong to Sheffield, but belonged to another company and was posted in error 4. The bank statement showed receipt of a wire transfer of $2,200 in payment of a note receivable, as well as $120 interest. 5. According to the bank statement. $28 was deducted from Sheffield's account for service charges. 6. The bank cleared cheque # 152 for $970; however, the cheque was recorded in Sheffield's records at $950. Research showed the bank was correct, and the cheque was recorded incorrectly in Sheffield's books. The cheque was written in payment of advertising. 7. A cheque for $610 from one of Sheffield's customers was rejected by the bank due to insufficient funds (NSF)

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

Auditing Mantras Forensic Accounting Important Standards On Auditing

Authors: Buffy Mielcarek

1st Edition

B09PP4SKL1, 979-8796281437

More Books

Students also viewed these Accounting questions

Question

c. What were the reasons for their move? Did they come voluntarily?

Answered: 1 week ago

Question

5. How do economic situations affect intergroup relations?

Answered: 1 week ago