Listed below are eight interbank cash transfers for Steven Smith Co., indicated by the letters a through h, for late December 20X1 and early January 20X2.

For each of the transfers a through h, (1) indicate whether cash is understated, overstated, or correct as a result of the transfer; and (2) provide a brief example of what could cause the situation. Answer in a form such as the one illustratedhere.

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Understated, Overstated, or Correct Correct Transfer Example Book entries: The transfer was recorded in the account ing records as a check written on the disbursing bank on December 29 and a corresponding cash receipt recorded to receiving bank on that date. Bank entries: The check was taken to the receiving bank on December 29 and deposited. The accounts are both in the same bank, and accordingly the transaction was recorded in both accounts as of that date.