You are examining the following client-prepared bank reconciliation during your examination of the financial statements of LUNA Concrete Products, Inc.: LUNA Concrete Products, Inc. Bank Reconciliation December 31, 20x3 Balance per bank (a) P 18,375.91 Deposits in transit (b) December 30 December 31 1,471.10 2,840.69 4,311.79 Outstanding checks (c) 837 1941 1966 1984 1985 1986 1991 6,000.00 671.80 320.00 1,855.42 3,621.22 2,576.89 4,420.88 (19,466.21) Sub-total 3,221.49 NSF check returned Dec 29 (d) 200.00 Bank charges 5.50 Customer note collected by the bank (P2,750 plus P275 interest) (e) (3,025.00) Balance per books (f) P550.09 Required : Identify a specific substantive procedure that you should perform to gather evidence in support of each of the items (a) through(f) above.
You are examining the following client-prepared bank reconciliation during your examination of the financial statements of LUNA Concrete Products, Inc.: LUNA Concrete Products, Inc. Bank Reconciliation December 31, 20x3 Balance per bank (a) P 18,375.91 Deposits in transit (b) December 30 December 31 1,471.10 2,840.69 4,311.79 Outstanding checks (c) 837 1941 1966 1984 1985 1986 1991 6,000.00 671.80 320.00 1,855.42 3,621.22 2,576.89 4,420.88 (19,466.21) Sub-total 3,221.49 NSF check returned Dec 29 (d) 200.00 Bank charges 5.50 Customer note collected by the bank (P2,750 plus P275 interest) (e) (3,025.00) Balance per books (f) P550.09 Required : Identify a specific substantive procedure that you should perform to gather evidence in support of each of the items (a) through(f) above.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
- You are examining the following client-prepared bank reconciliation during your examination of the financial statements of LUNA Concrete Products, Inc.:
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LUNA Concrete Products, Inc. Bank Reconciliation December 31, 20x3 |
|
|
|
|
Balance per bank (a) |
|
|
P 18,375.91 |
|
Deposits in transit (b) December 30 December 31 |
|
1,471.10 2,840.69 |
4,311.79 |
|
Outstanding checks (c) 837 1941 1966 1984 1985 1986 1991 |
|
6,000.00 671.80 320.00 1,855.42 3,621.22 2,576.89 4,420.88 |
(19,466.21) |
|
Sub-total |
|
|
3,221.49 |
|
NSF check returned Dec 29 (d) |
|
|
200.00 |
|
Bank charges |
|
|
5.50 |
|
Customer note collected by the bank (P2,750 plus P275 interest) (e) |
|
|
(3,025.00) |
|
Balance per books (f) |
|
|
P550.09 |
Required :
Identify a specific substantive procedure that you should perform to gather evidence in support of each of the items (a) through(f) above.
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