Question
Required information [The following information applies to the questions displayed below.] The cash records and bank statement for the month of July for Glover Incorporated
Required information
[The following information applies to the questions displayed below.]
The cash records and bank statement for the month of July for Glover Incorporated are shown below.
| GLOVER INCORPORATED | ||||||||||||||||||
| Cash Account Records | ||||||||||||||||||
| July 1, 2021, to July 31, 2021 | ||||||||||||||||||
| Cash Balance | Cash Balance | |||||||||||||||||
| July 1, 2021 | + | Cash Receipts | Cash Disbursements | = | July 31, 2021 | |||||||||||||
| $6,950 | $8,300 | $8,600 | $6,650 | |||||||||||||||
| Cash Receipts | Cash Disbursements | |||||||||||||||||
| Date | Desc. | Amount | Date | Check# | Desc. | Amount | ||||||||||||
| 7/9 | Sales | $ | 2,520 | 7/7 | 531 | Rent | $ | 1,460 | ||||||||||
| 7/21 | Sales | 3,100 | 7/12 | 532 | Salaries | 1,920 | ||||||||||||
| 7/31 | Sales | 2,680 | 7/19 | 533 | Equipment | 3,100 | ||||||||||||
| 7/22 | 534 | Utilities | 860 | |||||||||||||||
| 7/30 | 535 | Advertising | 1,260 | |||||||||||||||
| $ | 8,300 | $ | 8,600 | |||||||||||||||
| P.O. Box 123878 | FIDELITY UNION | Member FDIC | |||||||||||||||||||||||||
| Gotebo, OK 73041 | You Can Bank On Us | ||||||||||||||||||||||||||
| (580) 377-OKIE | |||||||||||||||||||||||||||
| Account Holder: | Glover Incorporated | Account Number: | 2252790471 | ||||||||||||||||||||||||
| 519 Main Street | |||||||||||||||||||||||||||
| Gotebo, OK 73041 | Statement Date: | July 31, 2021 | |||||||||||||||||||||||||
| Beginning Balance | Deposits and Credits | Withdrawals and Debits | Ending Balance | ||||||||||||||||||||||||
| July 1, 2021 | NO. | Total | NO. | Total | July 31, 2021 | ||||||||||||||||||||||
| $7,500 | 3 | $5,666 | 7 | $ 8,396 | $ 4,770 | ||||||||||||||||||||||
| Deposits and Credits | Withdrawals and Debits | Daily Balance | |||||||||||||||||||||||||
| Date | Amount | Desc. | Date | No. | Amount | Desc. | Date | Amount | |||||||||||||||||||
| 7/10 | $ | 2,520 | DEP | 7/2 | 530 | $ | 550 | CHK | 7/2 | $ | 6,950 | ||||||||||||||||
| 7/22 | 3,100 | DEP | 7/10 | 531 | 1,460 | CHK | 7/10 | 8,010 | |||||||||||||||||||
| 7/31 | 46 | INT | 7/14 | 532 | 1,920 | CHK | 7/14 | 6,090 | |||||||||||||||||||
| 7/18 | 360 | NSF | 7/18 | 5,730 | |||||||||||||||||||||||
| 7/22 | 533 | 3,600 | CHK | 7/22 | 5,230 | ||||||||||||||||||||||
| 7/26 | 460 | EFT | 7/26 | 4,770 | |||||||||||||||||||||||
| 7/30 | 46 | SF | 7/30 | 4,724 | |||||||||||||||||||||||
| 7/31 | $ | 4,770 | |||||||||||||||||||||||||
| $ | 5,666 | $ | 8,396 | ||||||||||||||||||||||||
| Desc. | DEP Customer deposit | INT Interest earned | SF Service fees |
| NOTE Note collected | CHK Customer check | NSF Nonsufficient funds | |
| EFT Electronic funds transfer |
Additional information:
-
The difference in the beginning balances in the companys records and the bank statement relates to check #530, which is outstanding as of June 30, 2021.
-
Check #533 is correctly processed by the bank.
-
The EFT on July 26 relates to the purchase of office supplies.
Required:
1. Prepare a bank reconciliation for Glovers checking account on July 31, 2021. (Amounts to be deducted should be indicated with a minus sign. Total entries to the same account together when entering in the bank reconciliation.)
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Internal Auditing An Integrated Approach
Authors: Richard E. Cascarino
2nd Edition
0702172693, 978-0702172694
