Question

You are doing the first year audit for Sugar and Spice and have been assigned responsibility for doing a four-column proof of cash for the month of December, 2009.You obtain the following information:1. Balance per books - adjustedNovember 30 $15,5552. Deposits in transitNovember 30 10,451December 31 5,7393. Outstanding checksNovember 30 1,811December 31 2,6154. Service charge charged by the bankDecember 31 255. Interest on a bank loan for the month of December, charged by the bank but not recordedDecember 31 1486. Balance per bank - unadjustedDecember 31 10,2437. Proceeds from a note of the Simmons Company were collected by the bank in December but were not entered on the books:Principal 3,000Interest 287Total 3,2878. On December 15, a check for $888 of the Stone Company was charged to the Sugar and Spice account by the bank in error.9. Dishonored checks are not recorded on the books unless they permanently fail to clear the bank. The bank treats them as disbursements when they are dishonored and deposits when they are re-deposited. Checks totaling $1,722 were dishonored in December; $1,247 was re-deposited in December and the remaining amount re-deposited in January 2010.10. On December 31, a deposit for $150 was deposited by the bank to the Sugar and Spice account that should have been posted by the bank to Sugar and Cinnamon Cookies accounting.11. Cash receipts for DecemberPer books 20,121INSTRUCTIONS:A. Prepare a four-column proof of cash for the month ended December 2009. It should show both adjusted and unadjusted cash. There should be a proper heading with company name, proof of cash, and the appropriate date.B. Prepare your Proof of Cash in excel if possible. It should make the assignment easier.C. After completing the proof of cash, on a separate page, prepare all adjusting general ledger entries in proper form. Your adjusting entry document should have a proper heading with company name, adjusting general ledger entries, and the appropriate date. An example of how an adjusting entry should look is as follows.Sugar and SpiceAdjusting General Ledger EntriesFor the Month of December 2009DebitsCreditsDecember 31, 2009Miscellaneous Expense $30.00Cash $30.00To record the bank service charge for the month of October, 2009.This is an example journal entry so do not include it with your official answer unless you need it to balance your work.

Answer 1

Answer

The answer and procedures of the exercise are attached in a microsoft excel document.  

Explanation  

B) we don't have authorisation to upload excel

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.  

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