B-06.04 Problem

B-06.04 Problem - Ending balance per bank statement...

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B-06.04 Daniel Scott is an audit manager with the accounting firm of Nelson & Riley, CPAs. As part of the routine audit procedures for one of their clients, Daniel instructed Wanda Mullins, a newly hired staff auditor, to obtain a bank statement directly from the client's bank and prepare an independent reconciliation of the Cash account. Wanda did a great job and presented Daniel with the following reconciliation. Daniel has now forwarded this document directly to you, with a request that you prepare proposed adjusting entries that need to be recorded by the client.
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Unformatted text preview: Ending balance per bank statement 67,700.98 $ Add: Deposits in transit 13,444.12 Deduct: Outstanding checks #12221 16,887.34 $ #12327 8,550.50 #12329 132.74 (25,570.58) Correct cash balance $ 55,574.52 Ending balance per company records 52,148.55 $ Add: Payment from customer via ETF* 3,445.99 $ Interest earnings 566.88 4,012.87 Deduct: Reject customer credit card/charge back 466.90 Service charges 120.00 (586.90) Correct cash balance $ 55,574.52 * This payment has yet to be recorded as revenue by the company....
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