WP 1.C                     BILTRITE BICYCLES, INC.

Prepared by:
                              Interbank Transfer Schedule Date:
                                  December 31, 2009 Reviewed by:
Date:

Check                Date of disbursement          Date of receipt

  No.       From       To Amount Books Bank Books Bank Comments
­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­ ­­­­­­­­­­­­­­­ ­­­­­­­­­­­­­­­­­­­­ ­­­­­­­­­ ­­­­­­­­­­­­­­­­­­­­­­­­­­­­­ ­­­­­­­­­­­­­ ­­­­­­­­­­­­­­­­­­­­­
  126882    Bank Two   Dollar Bank­Payroll $826,554  12/10/09  % 12/11/09 * 12/10/09  # 12/10/09 *

  126942    Bank Two   Dollar Bank­Payroll $923,412  12/17/09  % 12/18/09 * 12/17/09  # 12/17/09*

  127212    Bank Two  Dollar Bank­General $2,000,000  12/20/09  % 12/21/09 * 12/20/09  # 12/20/09 * To prevent overdraft

in Dollar Bank account
  127222    Bank Two   Dollar Bank­Payroll $897,609  12/24/09  % 12/27/09 * 12/24/09  # 12/26/09 *

  127332    Bank Two   Dollar Bank­General $3,000,000  1/2/10  % 1/4/10 & 12/31/09  # 12/31/09 * Credited to "notes

receivable­officers"

Entries Made:

12/31/09  Dollar Bank Demand Deposit­1002 $3,000,000 
                      Notes Receivable­Officers­1203 $3,000,000 

1/2/10  Notes Receivable­Officers­1203 $3,000,000 
                  Bank Two Demand Deposit­1001 $3,000,000 

Correct Entry:

12/31/09  Dollar Bank Demand Deposit­1002 $3,000,000 
                      Bank Two Demand Deposit­1001 $3,000,000 

Audit Reclassification No. A

Notes Receivable­Officers
      Cash on Hand and in Banks
  To restore T. Lawton note receivable, unpaid
      at December 31, 2009.

Explanation of audit legends:
  *  Traced to December bank statement
  &  Traced to cutoff bank statement
  %  Examined December, 2009 and January, 2010 check registers
  #  Examined December, 2009 and January, 2010 cash receipts