Mindanao Company provided the following data for the month of December: Balance per book Bank service charges Outstanding checks Deposit in transit Customer note collected by bank 1,000,000 3,000 235,000 300,000 375,000 15,000 62,000 250,000 Interest on customer note Customer check returned NSF Depositor's payment of note payable charged to account

Q: Which audit claims will be met by the audit method of cash count and bank verification requests

A: introduction: If the management's financial statements have any inaccuracies or frauds, the only…

Q: What are some of the reasons the bank statement balance does not match the company's general ledger…

A: The reconciliation statement is the statement that is prepared to see the various differences being…

Q: In preparing a bank reconciliation, what is the proper treatment of a deposit in transit?

A: Deposit in transit (unrecorded deposit) is the amount that has been entered in the cash book of the…

Q: Describe what is meant by a cutoff bank statement and state itspurpose.

A: Cutoff Bank Statement: A complete bank statement that includes list of all paid checks and deposit…

Q: The determination of cash requirements is closely associated with a bank’s liquidity requirements.…

A: The ease with which an asset, or security, can be turned into cash without impacting its market…

Q: Why could cash be falling in a set of accounts?

A: Cash can fall in a set of accounts for a variety of reasons. These include making large purchases,…

Q: What is bank reconciwhliation

A: Bank Reconciliation Statement:  Bank statement is generally provided by the bank. Apart from bank…

Q: What is the purpose of preparing a bank reconciliation?

A: Bank reconciliation is prepared to reconcile the company's cash book that is reconciled with its…

Q: In preparing  a bank reconciliation,  what is the proper treatment of interest earned on the bank…

A: Bank reconciliation is the process of reconciling the cash balance in books with the bank balance.…

Q: Which bank control protects against forgery? Which bank control reports what the bank did with the…

A: The answer is as fallows

Q: To establish a petty cash fund, which account is debited

A: The petty cash fund is the fund maintained by the company in order to pay for the small expenses of…

Q: Which of the following decreases a company’s cash balance? deposits in transit bank deposit slips…

A: Bank reconciliation is a process of matching the balance of cash as per the cash book of an…