Refer to the bank reconciliation for BCS, Inc. in the chapter. Answer the following questions about this

Question:

Refer to the bank reconciliation for BCS, Inc. in the chapter.
Answer the following questions about this document.
a. If this is the only cash account, what amount of cash should appear on the for December 31, 2011?
b. How will the auditors determine whether the balance per the bank or the balance per the books is correct?
c. If the bank recorded the deposit for $37,837 on January 2, would you assume that the deposit had been listed correctly on the bank reconciliation?
d. If the bank recorded the second deposit for $87,874 on January 10, would you assume that the deposit had been recorded correctly on the bank reconciliation? What questions would you ask the client about this deposit?
e. What evidence would you use to verify that the outstanding checks were valid at year-end?
f. What would you assume if none of the outstanding checks had cleared the bank by January 15, 2012?
g. Is it likely that all checks will clear the bank by January 15, 2012? Explain your answer.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...