Stin Kin Company BANK RECONCILIATION VILLAGE BANK ACCOUNT 2 December 31, 2014 Balance per bank (a)...

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Stin Kin Company BANK RECONCILIATION VILLAGE BANK ACCOUNT 2 December 31, 2014 Balance per bank (a) Deposits in Transit (b) 12/30 12/31 Subtotal Outstanding checks (c) 837 1941 1966 1984 1985 1987 1991 Subtotal NSF check returned 12/29 (d) Bank charges Error Check No. 1932 1,471.10 2,840.69 6,000.00 671.80 320.00 1,855.42 3,621.22 2,576.89 4,420.88 $18,375.91 4,311.79 22,687.70 (19,466.21) 3,221.49 200.00 5.50 148.10 Customer note collected by the bank ($2,750 plus $275 interest) (e) Balance per books (f) Required: 1. State one or more audit procedures that should be performed by the auditors in gathering evidence in support of each of the items (a) through (f) above. (3.025.00) 550.09 2. Redraft the bank reconciliation using the Dauber Method, as discussed in class. This problem was adapted from the May 1983 CPA Exam. Accounting 321. Professor N. Dauber, CPA, MS BOOK BALANCE, BEGINNING + CASH RECEIPTS - CASH DISBURSEMENTS = UNADJUSTED BOOK BALANCE, ENDING + UNRECORDED DEPOSITS - UNRECORDED CHECKS - BANK CHARGES +NOTES COLLECTED BY BANK NOTES PAID BY BANK - HOW TO PREPARE A BANK RECONCILIATION - N.G. CHECKS + REDEPOSIT OF N.G. CHECKS +/- DEPOSIT CORRECTIONS +/- CHECK ADJUSTMENTS - = ADJUSTED BOOK BALANCE, ENDING + OUTSTANDING CHECKS - DEPOSITS IN TRANSIT +/- BANK ERRORS + CLEARED DEPOSITS FOR SUBSEQUENT MONTH CLEARED CHECKS FOR SUBSEQUENT MONTH +/- MISC. CLEARED ITEMS FOR SUBSEQUENT MONTH = BANK BALANCE, ENDING ABOVE THE LINE ADJUST- MENTS Stin Kin Company BANK RECONCILIATION VILLAGE BANK ACCOUNT 2 December 31, 2014 Balance per bank (a) Deposits in Transit (b) 12/30 12/31 Subtotal Outstanding checks (c) 837 1941 1966 1984 1985 1987 1991 Subtotal NSF check returned 12/29 (d) Bank charges Error Check No. 1932 1,471.10 2,840.69 6,000.00 671.80 320.00 1,855.42 3,621.22 2,576.89 4,420.88 $18,375.91 4,311.79 22,687.70 (19,466.21) 3,221.49 200.00 5.50 148.10 Customer note collected by the bank ($2,750 plus $275 interest) (e) Balance per books (f) Required: 1. State one or more audit procedures that should be performed by the auditors in gathering evidence in support of each of the items (a) through (f) above. (3.025.00) 550.09 2. Redraft the bank reconciliation using the Dauber Method, as discussed in class. This problem was adapted from the May 1983 CPA Exam. Accounting 321. Professor N. Dauber, CPA, MS BOOK BALANCE, BEGINNING + CASH RECEIPTS - CASH DISBURSEMENTS = UNADJUSTED BOOK BALANCE, ENDING + UNRECORDED DEPOSITS - UNRECORDED CHECKS - BANK CHARGES +NOTES COLLECTED BY BANK NOTES PAID BY BANK - HOW TO PREPARE A BANK RECONCILIATION - N.G. CHECKS + REDEPOSIT OF N.G. CHECKS +/- DEPOSIT CORRECTIONS +/- CHECK ADJUSTMENTS - = ADJUSTED BOOK BALANCE, ENDING + OUTSTANDING CHECKS - DEPOSITS IN TRANSIT +/- BANK ERRORS + CLEARED DEPOSITS FOR SUBSEQUENT MONTH CLEARED CHECKS FOR SUBSEQUENT MONTH +/- MISC. CLEARED ITEMS FOR SUBSEQUENT MONTH = BANK BALANCE, ENDING ABOVE THE LINE ADJUST- MENTS

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Audit procedures for each item a Balance per bank The auditors can perform a bank confirmation or bank reconciliation to verify the accuracy of the ba... View the full answer