You are auditing general cash for the din company for the fiscal year december 31

2013. The client has not prepared the december 31 bank reconciliation. After a
brief discussion with the owner you agree to prepare the reconciliation, with
assistance from one of dion companys clerks. You obtain the following
information
Beginning balance

General ledger

bank statement

46,110

57,530

Deposits

250,560

Cash receipts journal

254,560

Checks cleared

(236,150)

Cash disbursement journal

(218,110)

December bank service charge

(870)

Note paid directly

(61,000)

NSF check

(3,110)

Ending balance

82,560

6,960

November 30 bank reconciliation

Information in general ledger and bank statement
Balance per bank

57,530

Deposit in transit

6,000

Outstanding checks

17,420

Balance per books

46,110

Additional information obtained is:

1. Checks clearing that were outstanding on november 30 totaled 16,920
2. Checks clearing that were recorded in the december disbursement journal

totaled 204,670
3. A check for 10,600 cleared the bank, but had not been recorded in the cash
disbursement journal. It was for an acquisition of inventory. Dion uses the
periodic inventory method
4. A check for 3,960 was charged to dion company but had been written on a
different company bank account
5. Deposit included 6,000 from november and 244,560 for december
6. The bank charged dion company account for a non-sufficient check totaling
3,110. The credit manager concluded that the customer intentionally closed
its account and the owner left the city. The check was turned over to a
collection agency.
7. A note for 58,000 plus interest was paid directly to bank under an agreement
signed four months ago. The note payable was recorded at 58,000 on dion
company books
Based on the facts given, determine the following:
1. Outstanding checks on december 31
a. 9,980

b. 10,830

c. 13,940

d. 3,340

2. Deposit in transit on december 31

a. 6,890

b. 10,000

c. 6,000

d. 9,110

3. Adjusted cash balance on december 31

a. 6,980

b. 10,940

c. 3,870

d. 3,020