ACCT 2101 Lecture 12: Chapter 12: Statement of Cashflows
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Receiving Report Number | Amount on Vendor’s Invoice | Amount Presently Included in or Excluded from AccountsPayable | RECEIPT and VENDOR’S INVOICE DATA | ||
Received Date | Invoice and Shipping Date | FOB Origin or Destination | |||
101 | $2,619.26 | Included | 12-30-04 | 12-30-04 | Origin |
102 | 3,709.16 | Included | 12-26-04 | 12-15-04 | Destination |
103 | 5,182.31 | Included | 12-31-04 | 12-26-04 | Origin |
104 | 6,403.00 | Included | 12-16-04 | 12-27-04 | Destination |
105 | 8,484.91 | Included | 12-28-04 | 12-31-04 | Origin |
106 | 5,916.20 | Included | 01-03-05 | 12-31-04 | Destination |
107 | 7,515.50 | Included | 01-05-05 | 12-26-04 | Origin |
108 | 3,709.16 | Included | 12-26-04 | 12-15-04 | Destination |
109 | 5,182.31 | Included | 12-31-04 | 12-26-04 | Origin |
110 | 6,403.00 | Excluded | 12-16-04 | 12-27-04 | Destination |
111 | 8,484.91 | Included | 12-28-04 | 12-31-04 | Origin |
112 | 5,916.20 | Excluded | 01-03-05 | 12-31-04 | Destination |
113 | 7,515.50 | Included | 01-05-05 | 12-26-04 | Origin |
114 | 6,403.00 | Included | 12-16-04 | 12-27-04 | Destination |
115 | 3,709.16 | Included | 12-26-04 | 12-15-04 | Destination |
116 | 5,182.31 | Included | 12-31-04 | 12-26-04 | Origin |
117 | 6,403.00 | Included | 12-16-04 | 12-27-04 | Destination |
118 | 8,484.91 | Included | 12-28-04 | 12-31-04 | Origin |
119 | 5,916.20 | Excluded | 01-03-05 | 12-31-04 | Destination |
121 | 7,515.50 | Included | 01-05-05 | 12-26-04 | Origin |
122 | 3,709.16 | Included | 12-26-04 | 12-15-04 | Destination |
124 | 5,182.31 | Included | 12-31-04 | 12-26-04 | Origin |
125 | 6,403.00 | Excluded | 12-16-04 | 12-27-04 | Destination |
126 | 8,484.91 | Included | 12-28-04 | 12-31-04 | Origin |
127 | 5,916.20 | Excluded | 01-03-05 | 12-31-04 | Destination |
128 | 7,515.50 | Excluded | 01-05-05 | 12-26-04 | Origin |
129 | 6,403.00 | Excluded | 12-16-04 | 12-27-04 | Destination |
130 | 8,484.91 | Included | 12-28-04 | 12-31-04 | Origin |
Given the data on above Table, in your opinion, is a moredetailed look at all of the transactions necessary? Why? Pleaseassume that the acceptable amount of misstatement is 5% of thetotal amount of the vendor invoices shown.
Receiving Report Number | Amount on Vendor’s Invoice | Amount Presently Included in or Excluded from AccountsPayable | RECEIPT and VENDOR’S INVOICE DATA | ||
Received Date | Invoice and Shipping Date | FOB Origin or Destination | |||
101 | $2,619.26 | Included | 12-30-04 | 12-30-04 | Origin |
102 | 3,709.16 | Included | 12-26-04 | 12-15-04 | Destination |
103 | 5,182.31 | Included | 12-31-04 | 12-26-04 | Origin |
104 | 6,403.00 | Included | 12-16-04 | 12-27-04 | Destination |
105 | 8,484.91 | Included | 12-28-04 | 12-31-04 | Origin |
106 | 5,916.20 | Included | 01-03-05 | 12-31-04 | Destination |
107 | 7,515.50 | Included | 01-05-05 | 12-26-04 | Origin |
108 | 3,709.16 | Included | 12-26-04 | 12-15-04 | Destination |
109 | 5,182.31 | Included | 12-31-04 | 12-26-04 | Origin |
110 | 6,403.00 | Excluded | 12-16-04 | 12-27-04 | Destination |
111 | 8,484.91 | Included | 12-28-04 | 12-31-04 | Origin |
112 | 5,916.20 | Excluded | 01-03-05 | 12-31-04 | Destination |
113 | 7,515.50 | Included | 01-05-05 | 12-26-04 | Origin |
114 | 6,403.00 | Included | 12-16-04 | 12-27-04 | Destination |
115 | 3,709.16 | Included | 12-26-04 | 12-15-04 | Destination |
116 | 5,182.31 | Included | 12-31-04 | 12-26-04 | Origin |
117 | 6,403.00 | Included | 12-16-04 | 12-27-04 | Destination |
118 | 8,484.91 | Included | 12-28-04 | 12-31-04 | Origin |
119 | 5,916.20 | Excluded | 01-03-05 | 12-31-04 | Destination |
121 | 7,515.50 | Included | 01-05-05 | 12-26-04 | Origin |
122 | 3,709.16 | Included | 12-26-04 | 12-15-04 | Destination |
124 | 5,182.31 | Included | 12-31-04 | 12-26-04 | Origin |
125 | 6,403.00 | Excluded | 12-16-04 | 12-27-04 | Destination |
126 | 8,484.91 | Included | 12-28-04 | 12-31-04 | Origin |
127 | 5,916.20 | Excluded | 01-03-05 | 12-31-04 | Destination |
128 | 7,515.50 | Excluded | 01-05-05 | 12-26-04 | Origin |
129 | 6,403.00 | Excluded | 12-16-04 | 12-27-04 | Destination |
130 | 8,484.91 | Included | 12-28-04 | 12-31-04 | Origin |
Using the following Purchase Order Receipts (Table 1 above), howmight you approach using audit sampling to determine if theaccounting data in the table has a material amount of errors ormisstatements as of December 31, 2004?
P8-4A The bankportion of the bank reconciliation for Backhaus Company at November30, 2010, was as follows.
BACKHAUS COMPANY
Bank Reconciliation
November 30, 2011
Cash balance perbank $14,367.90
Add: Deposits intransit 2,530.20
16,898.10
Less: Outstanding checks
CheckNumber Check Amount
3451 $2,260.40
3470 720.10
3471 844.50
3472 1,426.80
3474 1,050.00 6,301.80
Adjusted cash balance perbank $10,596.30
The adjusted cash balance per bankagreed with the cash balance per books at November 30.
The December bank statement showedthe following checks and deposits.
Bank Statement | |||||
Checks | Deposits | ||||
Date | Number | Amount | Date | Amount | |
12-1 | 3451 | $2,260.40 | 12-1 | $2,530.20 | |
12-2 | 3471 | 844.50 | 12-4 | 1,211.60 | |
12-7 | 3472 | 1,426.80 | 12-8 | 2,365.10 | |
12-4 | 3475 | 1,640.70 | 12-16 | 2,672.70 | |
12-8 | 3476 | 1,300.00 | 12-21 | 2,945.00 | |
12-10 | 3477 | 2,130.00 | 12-26 | 2,567.30 | |
12-15 | 3479 | 3,080.00 | 12-29 | 2,836.00 | |
12-27 | 3480 | 600.00 | 12-30 | 1,025.00 | |
12-30 | 3482 | 475.50 | Total | $18,152.90 | |
12-29 | 3483 | 1,140.00 | |||
12-31 | 3485 | 540.80 | |||
Total | $15,438.70 | ||||
The cash records per books forDecember showed the following.
Cash Payments Journal | Cash Receipts Journal | |||||||
Date | Number | Amount | Date | Number | Amount | Date | Amount | |
12-1 | 3475 | $1,640.70 | 12-20 | 3482 | $475.50 | 12-3 | $1,211.60 | |
12-2 | 3476 | 1,300.00 | 12-22 | 3483 | 1,140.00 | 12-7 | 2,365.10 | |
12-2 | 3477 | 2,130. 00 | 12-23 | 3484 | 798.00 | 12-15 | 2,672.70 | |
12-4 | 3478 | 621.30 | 12-24 | 3485 | 450.80 | 12-20 | 2,954.00 | |
12-8 | 3479 | 3080.00 | 12-30 | 3486 | 1,889.50 | 12-25 | 2,567.30 | |
12-10 | 3480 | 600.00 | Total | $14,933.20 | 12-28 | 2,836.00 | ||
12-17 | 3481 | 807.40 | 12-30 | 1,025.00 | ||||
12-31 | 1,690.40 | |||||||
Total | $17,322.10 | |||||||
The bank statement contained twomemoranda:
A credit of $4,145 for the collection of a $4,000 note forBackhaus Company plus interest of $160 and less a collection fee of$15. Backhaus Company has not accrued any interest on the note.
A debit of $572.80 for an NSF check written by D. Chagnon, acustomer. At December 31, the check had not been redeposited in thebank.
At December 31, the cash balance perbooks was $12,985.20, and the cash balanced per the bank statementwas $20,654.30. The bank did not make errors, but two errors weremade by Backhaus Company.
Instructions
Prepare a bank reconciliation at December 31.
Prepare the adjusting entries based on the reconciliation.(Hint: The correction of any errors pertaining to recording checksshould be made to Accounts Payable. The correction of any errors torecording cash receipts should be made to Accounts Receivable.)