In the audit of the R.T. Company a large branch that maintains it.docx

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In the audit of the R.T. Company a large branch that maintains its own bank account, cash in periodically transferred to the central account in Cedar Rapids. On the branch account's records, bank transfers are recorded as a debit to the home office clearing account and a credit to the branch bank account. Similarly, the home office account is recorded as a debit to the central bank account and a credit to the branch office clearing account. Gordon Light is the head bookkeeper for both the home office and the branch bank accounts. Because he also reconciles the bank account, the senior auditor, Cindy Marintete, is concerned about the internal control deficiency. As a part of the year end audit bank transfer, Cindy Marintete asks you to schedule the transfer for the last few days in 2013 and the first few days of 2014. You prepare following list : Amount of Date Recorded in Data Recorded in Data Deposited in Data Cleared the Transfer ($). the H.O. Cash the B.O. Cash H.O. Bank Branch Bank Receipt Journal.
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Unformatted text preview: Disbursement Account. Account. Journal 17,000 12-27-2013 12-29-2013 12-26-2013 12-27-2013 28,000 12-28-2013 01-02-2014 12-28-2013 12-29-2013 16.000 01-02-2014 12-30-2013 12-28-2013 12-29-2013 10,000 12-26-2013 12-26-2013 12-28-2013 01-03-2014 21,000 01-02-2014 01-02-2014 12-28-2013 12-31-2013 22,000 01-0702014 01-05-2014 12-28-2013 01-03-2014 39,000 01-04-2014 01-06-2014 01-03-2014 01-05-2014 Required: a. In verifying each bank transfer, state the appropriate audit procedures you should perform. b. Prepare any adjusting entries required in the H.O records. C. Prepare any adjusting entries required in the B.O. bank records. d. State how each bank transfer should be included in the December 31, 2013, bank reconciliation for the H.O. account after you adjustments in part c. e. State how each bank transfer should be included in December 31, 2013, bank reconciliation of the branch bank account after your adjustments in part c....
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