Flemco has made a series of transfers between bank accounts near year-end, some through inter-bank wired...

Transcribed Image Text:

Flemco has made a series of transfers between bank accounts near year-end, some through inter-bank wired transfers and some through checks. You have audited the wired transfers and agree that they have been properly stated and now have the following schedule of transfers between cash accounts made using checks. You may assume that dates per bank are correct, and that dates per books are the dates the transactions were recorded in the books. Check number 4040 3270 Valley 4041 3271 Valley 0700 Midburg Question # 1. 2. 3. 4. 5. Bank accounts From 1st Nat. 1st Nat. Check number 4040 3270 4041 3271 0700 To Suburban Midburg Capital Suburban Suburban Amount $112,000 62,500 121,000 16,500 15,800 As a result of the transfer, total cash at December 31 appears to be Date disbursed per: Books 1/2 1/3 12/30 Bank 12/31 1/5 12/31 1/3 1/4 1/5 1/5 Analyze each of the above transfers and determine whether you believe each causes total cash to most likely be correct, overstated, or understated as of year-end. Date deposited per: Books 1/3 12/31 12/31 1/3 12/30 Bank 1/3 12/31 1/3 12/30 1/3 Flemco has made a series of transfers between bank accounts near year-end, some through inter-bank wired transfers and some through checks. You have audited the wired transfers and agree that they have been properly stated and now have the following schedule of transfers between cash accounts made using checks. You may assume that dates per bank are correct, and that dates per books are the dates the transactions were recorded in the books. Check number 4040 3270 Valley 4041 3271 Valley 0700 Midburg Question # 1. 2. 3. 4. 5. Bank accounts From 1st Nat. 1st Nat. Check number 4040 3270 4041 3271 0700 To Suburban Midburg Capital Suburban Suburban Amount $112,000 62,500 121,000 16,500 15,800 As a result of the transfer, total cash at December 31 appears to be Date disbursed per: Books 1/2 1/3 12/30 Bank 12/31 1/5 12/31 1/3 1/4 1/5 1/5 Analyze each of the above transfers and determine whether you believe each causes total cash to most likely be correct, overstated, or understated as of year-end. Date deposited per: Books 1/3 12/31 12/31 1/3 12/30 Bank 1/3 12/31 1/3 12/30 1/3

Answer rating: 100% (QA)

To determine whether total cash at December 31 appears to be correct overstated or understated for each transfer lets analyze each transaction 1 Check ... View the full answer