L14 Notes 3 - the payee because it was mutilated Check 1504...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
© W.R. Knechel No. Date of check Amount Comment 1501 1503 1523 1528 - - 1535 1575 11/28/X7 11 28/X7 12/5/X7 12/12/X7 12/19/X7 12/20/X7 12/20/X7 12/31/X8 $ 75 $ 580 $ 150 $ 800 $ 200 $ 300 $ 350 $10,000 This check was in payment of an invoice for $750 and was recorded in the cash book as $750. This check was payment of an invoice for $580 and was recorded in the cash book as $580. Examination of this check revealed that it was unsigned. A discussion with the client disclosed that it had been mailed inadvertently before it was signed. The check was endorsed and deposited by the payee and processed by the bank even though it was a legal nullity. The check was recorded in the cash disbursements. This check replaced 1504 that was returned by
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: the payee because it was mutilated. Check 1504 was not canceled on the books. This was a counter check drawn at the bank by the president of the company as a cash advance for travel expense. The president overlooked informing the bookkeeper about the check. The drawer of this check was the Tucker Company. This check had been labeled N.S.F. and returned to the payee because the bank had erroneously believed that the check was drawn by the Luck Company. Subsequently, the payee was advised to redeposit the check. This check was given to the payee on December 30, 19X7, as a postdated check with the understanding that is would not be deposited until January 5. The check was not recorded on the books in December....
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online