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(TCO 5) The bank account as a control device that helps to protect
cash. One of the requirements is to conduct periodic bank statement
reconciliations. Using the following data, complete the bank statement
Use the information below to prepare the bank
reconciliation for EEE Electric for the month of September.
Â· The bank statement indicated bank service
charges of $63.
Â· Outstanding checks as of September 30 amounted
Â· Deposits in transit as of September 30 amounted
Â· The ending balance per the September bank
statement is $40,653.
Â· EEEâ€™s bookkeeper mistakenly recorded a $1,610
cash disbursement as $1,160 for Office Supplies on check #2402.
Â· The bank mistakenly recorded a deposit of $2,800
as $280 on February 17.
Â· The bank made an EFT payment on behalf of the
company for Insurance for $3,200.
Â· Bank collected rent of $3,000 and a note, for
$16,450, including interest of $450.
Â· The ending cash balance per the books for
September before any adjustments was 28,800
Internal Controls are
required to safeguard assets and to ensure ethical business practices. (1)
Identify and explain the reason for any two of the five components of internal
control (10 points) and (2) provide examples of how your two selected
components of internal control will meet the goal of safeguarding assets and
promoting ethical business practices. (15 points)