You are doing the first-year audit of Sherman School District and have been assigned responsibility for doing a four-column proof of cash for the month of October 2013. You obtain the following information:

Please explain the solution in detail, thanks.

1. Balance per books Balance per bank 3. Outstanding checks 4. Cash receipts for October 5. Deposits in transit 6. Interest on a bank loan for the month of October, charged by the bank but not September 30 October 31 September 30 October 31 September 30 October 31 per bank per books September 30 October 31 $10,725 5,836 6,915 8,276 1,811 2,615 28,792 20,271 5,621 996 2. recorded, was $596. 7. Proceeds on a note of the Jones Company were collected by the bank on October 28 but were not entered on the books: Principal Interest $ 2,900 396 $ 3,296 8. On October 26, a $1,144 check of the Billings Company was charged to Sherman School District's account by the bank in error. 9. Dishonored checks are not recorded on the books unless they permanently fail to clear the bank. The bank treats them as disbursements when they are dishonored and deposits when they are redeposited. Checks totaling $1,335 were dishonored in October; $600 was redeposited in October and $735 in November