Exercise 3:

Does it make sense for the same person who prepares the daily cash deposits for the company to also perform the monthly bank reconciliation?

Describe the different types of audit opinions

EXERCISE TWO: BANK RECONCILIATION The June 30th, balance per bank statement was $6,100. The cash balance per books was $8,140. Outstanding checks amounted to $850, and deposits in transit were $2,500. The bank statement contained an NSF check for $550, a service charge for $25, and a debit memo for direct payment of the telephone bill of $175. In addition, it was discovered that a check to pay for utilities was correctly written and paid by the bank for $150, but was recorded on the books as $510 1) Prepare a bank reconciliation at June 30th 2) Prepare any necessary journal entries