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Century 21 Accounting Multicolumn Journal
11th Edition
ISBN:9781337679503
Author:Gilbertson
Publisher:Gilbertson
Chapter5: Cash Control Systems
Section: Chapter Questions
Problem 2AP
Related questions
Question
![The auditor has gathered the following information to test the accuracy of the
one prepared by the controller. In particular, the auditor is testing the accuracy
of the outstanding cheques. Use the following information to prepare the bank
reconciliation and calculate what the total of the outstanding cheques should
be.
1. Cash balance - March 31 $39,500 2. Outstanding Deposits $13,810
3. NSF cheque from a customer $750 4. Bank Statement Balance - March 31
$127,100
5. The bank recorded a deposit as $10,000 when the deposit was actually
$1,000
6. The bank credited the company's bank account with $3,900 of interest
earned
7. The bank statement showed an EFT from a customer for $16,300
8. The bank charged a service charge of $45
9. The company posted cheque #1730 as $890 when the actual amount was
properly debited by the bank for $980
a) Outstanding Cheques= $73,095
b) Outstanding Cheques= $76,995
c) Outstanding Cheques=$82,095
d) Outstanding Cheques= $56,795](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0e703533-b612-4b75-998d-994917274987%2F544887f0-e528-4cb3-bee0-df96318dd582%2Fary5xkn_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The auditor has gathered the following information to test the accuracy of the
one prepared by the controller. In particular, the auditor is testing the accuracy
of the outstanding cheques. Use the following information to prepare the bank
reconciliation and calculate what the total of the outstanding cheques should
be.
1. Cash balance - March 31 $39,500 2. Outstanding Deposits $13,810
3. NSF cheque from a customer $750 4. Bank Statement Balance - March 31
$127,100
5. The bank recorded a deposit as $10,000 when the deposit was actually
$1,000
6. The bank credited the company's bank account with $3,900 of interest
earned
7. The bank statement showed an EFT from a customer for $16,300
8. The bank charged a service charge of $45
9. The company posted cheque #1730 as $890 when the actual amount was
properly debited by the bank for $980
a) Outstanding Cheques= $73,095
b) Outstanding Cheques= $76,995
c) Outstanding Cheques=$82,095
d) Outstanding Cheques= $56,795
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