Reference no: EM132559696

Question - As a senior on the job, you discuss the work done with Sanjaya and determine

1. The balance per bank agreed with the amount shown on the bank confirmation received directly from the bank.

2. The deposit in transit was traced to the January bank statement.

3. All outstanding checks were traced to the December check register.

4. Adjusting entry 12 was for the collection of a $515 noninterest bearing note by the bank; entry 13 was for December bank charges of $4.45.

5. The recorded balance per books at December 31, is $61,267.69.

6. In comparing "paid" checks with the check register, an error was discovered. Check number 2640 for $980 to a creditor was recorded by Bold, Inc., as $890. The bank paid the correct amount.

7. The final step, done on January 7, was to check the mathematical accuracy of the schedule.

Instructions -

a. Prepare the bank reconciliation working paper in good form, showing adjusted balances per bank and per books.

b. Prepare the adjusting entries that presumably were made.

c. Prepare cash lead schedule assuming (1) account number 101, Petty Cash $5,000 (working paper A-2, no adjustments) and (2) account number 103, City Bank-Payroll $20,000 (working paper A-3, no adjustment).