Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

Blue River Faith Company has a major branch located in Miami. The branch deposits cash receipts daily into the bank and periodically transfers the receipts to the company's home office in Orlando. The transfers are accounted for as inter-company entries into the home office and branch office accounts. All accounting, however, is performed at the home office under the direction of the assistant controller. The assistant controller is also responsible for the transfers. The controller, however, independently reconciles the bank account each month or assigns this reconciliation to someone in the department. Often times the assistant controller is assigned this duty. The company is relatively small; therefore the controller is also the financial planner and treasurer for the company. As part of the year-end audit, you are assigned the task of conducting an audit of bank transfers. As part of the process, you are provided the following schedule of transfers:

Date Disbursement Amount Date Deposit Date cleared Date Cleared
Per Branch Home Office home office per branch statement
12-29-2011 $80,000 12-31-2011 12-31-2011 01-07-2012
01-02-2012 $41,000 12-31-2011 12-31-2011 01-05-2012
01-05-2012 $82,000 01-03-2012 01-07-2012 01-12-2012
12-31-2011 $54,000 01-02-2012 01-03-2012 01-08-2012
01-03-2012 $11,000 01-03-2012 12-31-2011 01-05-2012
12-27-2011 $32,000 12-31-2011 12-31-2011 01-03-2012

Required:

1) Briefly describe the audit objective in obtaining the bank transfer data above which you will use to prepare the Bank Transfer Schedule that reflects the correct information.
2) Identify the audit procedures that would be used to test the correctness of the client's bank transfers. Keep in mind the purpose (cutoff) of the schedule or tests.
3) Identify any adjusting journal entries that would be needed on either the home office or branch office accounting records as a result of the preceding transactions.
4) Indicate how each of the above transactions would be reflected on the December 31, 2011 bank statements of both the home office and the branch office.
5) Indicate which transactions require no adjustment. Indicate which transactions indicate kiting. Indicate which transactions represent errors in cash classification but not in dollar amount for the consolidated/combined cash for the overall company as a whole.

 

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M940020
  • Price:- $30

Guranteed 24 Hours Delivery, In Price:- $30

Have any Question? 


Related Questions in Accounting Basics

Course project a financial statement analysisa comparative

Course Project: A Financial Statement Analysis A Comparative Analysis of Nike, Inc. and Under Armour, Inc. Below is the link for the financial statements for Nike, Inc. for the fiscal year ending 2014. First, select 2014 ...

Accounting information systems1 you have been asked by the

Accounting Information Systems 1. You have been asked by the CFO of the company where you work or previously worked to evaluate the use of a professional service organization for processing the company's payroll. Identif ...

Accountingbullimagine you are a consultant hired to convert

Accounting • Imagine you are a consultant hired to convert a manual accounting system to an automated system. • Suggest the key advantages and disadvantages of automating a manual accounting system. • Identify the most i ...

Accounting assignmentflorida sunshine real estate

Accounting Assignment Florida Sunshine Real Estate Properties, Inc. is a real estate firm located in southwest Florida. The company, which advertises itself as "expert in the real estate market", monitors condominium sal ...

Accounting questions1 if cash is 2345 in 20x2 and 3671 in

Accounting Questions 1. If Cash is $2,345 in 20X2 and $3,671 in 20X1, what is the percentage of increase or (decrease) from 20X1 to 20X2? A. 56.55%******* B. (56.55%) C. 36.12% D. (36.12%) 2. Gross profit by department a ...

Accounting questions1 if cash is 2345 in 20x2 and 3671 in

Accounting Questions 1. If Cash is $2,345 in 20X2 and $3,671 in 20X1, what is the percentage of increase or (decrease) from 20X1 to 20X2? A. 56.55%******* B. (56.55%) C. 36.12% D. (36.12%) 2. Gross profit by department a ...

Introductory accounting assignment question 1 - the

INTRODUCTORY ACCOUNTING ASSIGNMENT QUESTION 1 - The information given below was extracted from the books of KAISER TRADERS. REQUIRED: 1.1: Compare the Bank Statement with the Cash Receipts Journal and Cash Payments Journ ...

Question 1the company you work for has a large amount of

Question 1 The company you work for has a large amount of disposable cash and very little debt on its books. The board of directors has expressed an interest in taking this money and investing in equity and debt securiti ...

Problem -a list of transactions appears below indicate

Problem - A list of transactions appears below. Indicate which accounting elements of the business are affected by placing in the respective columns the amount and the + (increasing) - (decrease) sign or NA, if the eleme ...

Review the short list of account balances from data below

Review the short list of account balances from data below. From the account balances, generate an income statement, a statement of owner's equity and a balance sheet for a hypothetical small business. The adjusted trial ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen