This question relates to CHECK KITING.

As of year-end (12/31) for each of the checks in the picture: (how each check affects end-year cash balance?)

PUT A, B, C, D, E in front of each check:

A: Properly stated

B. Cash on year-end B/S is overstated and bank reconciliation among banks can help auditor know about this overstatement

C. Cash on year-end B/S is overstated and bank reconciliation among banks can NOT help auditor know about this overstatement

E. Cash on year-end B/S is understated and bank reconciliation among banks can help auditor know about this understatement

F. Cash on year-end B/S is understated and bank reconciliation among banks can NOT help auditor know about this overstatement

Bank Accounts Date Disbursed Date Deposited Question Check Number From To Amount Books Bank Books Bank 2001 City Bank 3rd National 60,000 12/28 12/31 12/28 12/28 2002 City Bank Portland 80,000 12/28 1/3 12/31 12/31 6734 Ist City City Bank 42,000 1/3 12/31 12/31 12/31 3580 Portland 3rd National | 75,000 1/2 1/4 12/30 12/30 2008 City Bank 3rd National 44,000 12/31 1./5 12/31 1/3 2009 City Bank Portland 67,000 1/1 12/31 1/1 12/31 4005 3rd National City Bank 33,000 12/31 1/4 1/5 1/5 3599 Portland City Bank 56,000 12/29 12/31 1/3 12/31