Questions about the auditing need to do both of them

Modules VIII and IX (10 points each) 1. Retrieve the file module_8_bank. 2. Perform requirements 1, 2, 4, and 5 on page 713 of the textbook (Module VIII). 3. Perform requirements 1a, 1b, 1c, 2, and 4 on page 714 of the textbook. Provide your answers (clearly marked) on the cash audit workpapers. 4. Email me your excel file as one file attached for Modules VIII and IX. Grading: Biltrite 8 1 - Does it reconcile 2 - Prepare audit adjustment 4 - Post adjustment 5 - Purpose of cutoff statement 5 - Deposit in transit credited 1/12/10 2 2 2 2 2 Biltrite 9 1a - Purpose of analyzing bank transfers 1b - Possible adjustments 1c - Did Lawton repay the loan? 2 - Prepare audit reclassification1 4 - Post journal entry 4 - In default on loan agreement? 1 2 2 2 2 1 1 audit reclassifications and audit adjustments are both journal entries that the auditor proposes. Adjustments affect the income statement whereas reclassifications do not. WP 1.C BILTRITE BICYCLES, INC. Interbank Transfer Schedule December 31, 2009 Check No. From To ---------------------------------------126882 Bank Two Dollar Bank-Payroll Prepared by: Date: Reviewed by: Date: Date of disbursement Date of receipt Amount Books Bank Books Bank Comments --------------- -------------------- --------- ------------------------------ -------------- ---------------------$826,554 12/10/09 % 12/11/09 * 12/10/09 # 12/10/09 * 126942 Bank Two Dollar Bank-Payroll 127212 Bank Two 127222 Bank Two Dollar Bank-Payroll 127332 Bank Two Dollar Bank-General $3,000,000 Dollar Bank-General $923,412 12/17/09 % 12/18/09 * 12/17/09 # 12/17/09* $2,000,000 12/20/09 % 12/21/09 * 12/20/09 # 12/20/09 * $897,609 12/24/09 % 12/27/09 * 12/24/09 # 12/26/09 * 1/4/10 & 12/31/09 # 12/31/09 * 1/2/10 % Entries Made: 12/31/09 1/2/10 Dollar Bank Demand Deposit-1002 Notes Receivable-Officers-1203 Notes Receivable-Officers-1203 Bank Two Demand Deposit-1001 $3,000,000 $3,000,000 $3,000,000 $3,000,000 Correct Entry: 12/31/09 Dollar Bank Demand Deposit-1002 Bank Two Demand Deposit-1001 $3,000,000 Explanation of audit legends: * Traced to December bank statement & Traced to cutoff bank statement % Examined December, 2009 and January, 2010 check registers # Examined December, 2009 and January, 2010 cash receipts $3,000,000 To prevent overdraft in Dollar Bank account Credited to "notes receivable-officers"