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Problem 6-5B (Concluded)
Part 3
There are several possible reasons why some prenumbered checks are
missing from the sequence of canceled checks returned with a bank
statement. Reasons include:
(1) Some of the checks in the numbered sequence may have cleared the
bank in a previous period and were returned with the bank statement
in that previous period.
(4) Occasionally, a check will reach the bank but the bank will incorrectly
charge the check to the wrong account. When the bank detects the
error, it will return the check separately with a note of explanation to
the depositor.
SERIAL PROBLEM — SP 6
Serial Problem — SP 6, Business Solutions (50 minutes)
Part 1
BUSINESS SOLUTIONS
Bank Reconciliation
March 31, 2016
Bank statement balance..... $67,566 Book balance............................................................$68,057
Add Add
Bank error...........................
Deposits in Transit..............
500
0
Bank interest.........................................................
33
______
68,066 68,090
Reporting in Action — BTN 6-1
1.
($ in millions)
Balance
September
28, 2013
Cash and
equivalents
as % of:
Balance
September
29, 2012
Cash and
equivalent
s as % of:
Cash and cash
equivalents............... $ 14,259 — $ 10,746 —
2. Per the statement of cash flows for year ended September 28, 2013
($ millions):
Cash and equivalents, beginning-year............... $10,746
Per the statement of cash flows for year ended September 29, 2012
($ millions):
Reporting in Action (Concluded)
3. Days' Sales Uncollected ($ thousands)
Days’ sales uncollected = x 365
September 28, 2013: $13,102 / $170,910 x 365 = 27.98 days
The number of days of uncollected sales in accounts receivable has
Apple’s accounts receivable for its fiscal year ended September 28,
4. Solution depends on the annual report information obtained.
Accounts receivable
Net sales
Comparative Analysis — BTN 6-2
Days’ sales uncollected = x 365
Apple ($ millions)
Current Year: $13,102 / $170,910 x 365 = 27.98 days
Google ($ millions)
Current Year: $8,882 / $59,825 x 365 = 54.19 days
Comparative Analysis: Google’s decrease in days’ sales uncollected is
(5.5)%, while Apple’s increase in days’ sales uncollected is 9.8%. For the
Accounts receivable
Net sales
Ethics Challenge — BTN 6-3
1. In a small business office it is very important that the owner of the
3. Despite the collusion, the scheme is not foolproof. For example, some
ways in which the scheme might be uncovered or prevented include the
following:
A bank employee may become suspicious and call Dr. Conrad and
ask if she is aware that occasionally her employees cash patient
checks for cash.
An astute patient might notice that his/her statement contains a
4. Dr. Conrad should review her salary schedules for employees to make
sure that she is at least offering market pay. She may want to consider
bonding her employees to insure herself against material losses. Dr.
