Add: Balance per Bank at 12/31/2019 Viking Soup, Inc. Bank Reconciliation 12/31/2019 General Cash Account Deposit in Transit Deduct: Outstanding Checks Check #3147 Check #3149 Check #3152 Balance per Books at 12/31/2019 $1,672,980 156,745 (372,500) (5,437) (67,842) $1,383,946 A B C
Add: Balance per Bank at 12/31/2019 Viking Soup, Inc. Bank Reconciliation 12/31/2019 General Cash Account Deposit in Transit Deduct: Outstanding Checks Check #3147 Check #3149 Check #3152 Balance per Books at 12/31/2019 $1,672,980 156,745 (372,500) (5,437) (67,842) $1,383,946 A B C
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:### Bank Reconciliation Statement for Viking Soup, Inc.
#### Date: December 31, 2019
**General Cash Account**
The Bank Reconciliation Statement is a document that compares the bank balance as per the company’s records to the balance stated in the bank statement. Here is the detailed breakdown for Viking Soup, Inc. as of December 31, 2019:
#### Balance per Bank at 12/31/2019: $1,672,980
(Label A)
To reconcile the balance, we need to adjust for items that have not yet been processed by the bank.
#### Add: Deposit in Transit: $156,745
(Deposits that have been recorded in the company's books but have not yet been recorded by the bank.)
(Label B)
#### Deduct: Outstanding Checks:
(Checks that have been issued by the company but have not yet been cleared by the bank.)
- **Check #3147**: $(372,500)
- **Check #3149**: $(5,437)
- **Check #3152**: $(67,842)
(Total Outstanding Checks Deducted: $445,779)
(Label C)
### Calculated Balance per Books at 12/31/2019: $1,383,946
This final figure ($1,383,946) represents the reconciled balance that should match the company’s internal financial records.
Understanding this reconciliation helps to ensure that there are no discrepancies between the company's records and the bank’s statement, aiding in accurate financial reporting and efficient cash management.
![# Auditing Cash
Auditing cash is an important part of almost every financial statement audit. Testing cash is typically performed by testing each of the components of the year-end bank reconciliation. It is important that the auditor consider the relevant assertion for each component of the bank reconciliation in order to design appropriate tests. Three components are labeled on the bank reconciliation shown below. For each component, (1) indicate the most relevant assertion(s) for that component and (2) write an audit procedure you would use to test the assertion(s). Be specific with the audit procedure you would perform.
[There is a blank rectangular space here, presumably for a graph, diagram, or image related to the bank reconciliation components.]
Please fill in the required details to complete your understanding of auditing cash.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fec99e2ce-f146-4dfd-8358-2828b726596b%2F880e46f8-cbdb-44f4-87e9-c29d05000a5d%2Forbutcb_processed.jpeg&w=3840&q=75)
Transcribed Image Text:# Auditing Cash
Auditing cash is an important part of almost every financial statement audit. Testing cash is typically performed by testing each of the components of the year-end bank reconciliation. It is important that the auditor consider the relevant assertion for each component of the bank reconciliation in order to design appropriate tests. Three components are labeled on the bank reconciliation shown below. For each component, (1) indicate the most relevant assertion(s) for that component and (2) write an audit procedure you would use to test the assertion(s). Be specific with the audit procedure you would perform.
[There is a blank rectangular space here, presumably for a graph, diagram, or image related to the bank reconciliation components.]
Please fill in the required details to complete your understanding of auditing cash.
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