****Prepare a four column proof of cash ****

The following information was obtained from in an audit of cash of the Buttfuski Alcohol Distribution Company as of 12.31.15

1. Bank reconciliation at 11.30.15:

Balance per bank statement $19,400

Deposits in transit $1,100

Outstanding checks:

#2540 $140

#1501 $750

#1503 $580

#1504 $800

#1505 $30

Balance per books $18,200

2. Summary of the bank statement at 12.31.15

Balance brought forward $19,400

Deposits $148,700

Charges $132,500

Balance 12.31.15 $35,600

3. Summary of the general ledger at 12.31.15

Balance brought forward $18,200

Receipts $149,690

Disbursements $124,885

Balance $43,005

4. Buttfuski discounted its own 60 day note for $9,000 with Keybank on 12.1.15, the discount rate was 6%. The Canisius grad recorded the proceeds as a cash receipt for the face amount of the note.

5. The accountant records customers dishonored checks as a reduction of cash receipts. When the dishonored checks are redeposited, it is recorded as a regular cash receipt. 2 NSF checks for $180 and $220 were returned by Keybank during December and both were redeposited

6. December bank charges were $20. Also a $10 was made in December for a foreign draft in November. These charges have not been recorded

7. Check #2540 listed in the November outstanding checks was drawn is 2014. The payee cannot be located and the president agrees with your suggestion that the check be written back into the account.

8. Outstanding checks at 12.31.15 amounted to $4,000 excluding checks # 2540 and #1504

9. The cutoff bank statement disclosed that the bank had recorded a deposit of $2,400 on 1.2.16. The accountant had recorded this deposit on 12.31.15 and mailed it to Keybank

10. Some special checks need mention:

Number	Date	Account	Comment
1501	11.28.15	$75	Payment for an invoice for $750, was recorded as $750 in general ledger
1503	11.28.15	$580	Payment for an invoice for $580 and was recorded as $580 in general ledger
1523	12.12.15	$150	You noted this check was not signed. It was endorsed and deposited by the payee and processed by Keybank even though it was a legal nullity.
Bank Check	12.12.15	$200	Bank check drawn at the bank by the company president as a cash advance for his medical alcohol consumptions. He overlooked telling the about the check
Bank Check	12.20.15	$300	The drawer of this check was the Blowfish Company
1528	12.20.15	$800	This check replaced check # 1504. Because the payees dog got at it. Check # 1504 was not cancelled in the general ledger
1535	12.20.15	$350	Check was labeled NSF and returned to the payee because Keybank erroneously believed the check was drawn by the Truckfuski Company. The payee was advised to redeposit the check
1575	1.5.16	$10,000	This check was given to the president on 12.30.15 as a postdated check with the understanding that it would not be deposited until January 2016. It was not recorded on the general ledger in December 2015.

****Prepare a four column proof of cash like below and show work ****

Date

Starting Balance

Cash Receipts

Cash Disbursements

Ending Balance