L19 Notes_Part_22 - The bank treats them as disbursements...

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Proof of Cash Sherman School District 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 19X4. You obtain the following information: 1. Balance per books September 30 $8,106 October 31 3,850 2. Balance per bank September 30 5,411 October 31 6,730 3. Outstanding checks September 30 916 October 31 1,278 4. Cash receipts for October per bank 26,536 per books 19,711 5. Deposits in transit September 30 3,611 October 31 693 6. Interest on a bank loan for the month of October, charged by the bank but not 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 $3,300 Interest 307 $3,607 8. On October 26, a $407 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.
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Unformatted text preview: The bank treats them as disbursements when they are dishonored and deposits when they are redeposited. Checks totaling $609 were dishonored in October; $300 was redeposited in October and $309 in November. Required: a. Prepare a four-column proof of cash for the month ended October 31. It should show both adjusted and unadjusted cash. b. Prepare all adjusting entries. Sherman School District Proof of Cash Month of October 2004 Cash Cash 9/30/04 Receipts Disbursements 10/31/04 Balance per bank $5,411 $26,536 $25,217 $6,730 Deposits in transit 9/30/04 3,611 (3,611) 10/31/04 693 693 Outstanding checks 9/30/04 (916) (916) 10/31/04 1,278 (1,278) Bank error-check charged to wrong account (407) 407 NSF checks (300) (609) 309 Balance per bank -adjusted $8,106 $23,318 $24,563 $6,861 Balance per books unadjusted $8,106 $19,711 $23,967 $3,850 Adjustments to be made Interest charged 596 (596) Note proceed 3,607 3,607 Balance per books -adjusted $8,106 $23,318 $24,563 $6,861...
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This note was uploaded on 10/05/2011 for the course ACG 5637 taught by Professor Monikacaushoulli during the Fall '08 term at University of Florida.

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L19 Notes_Part_22 - The bank treats them as disbursements...

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