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P08-05A

		Student Name:
		Class:
			Problem 08-05A
	ELS COMPANY
	Bank Reconciliation
	September 30, 2011
	Bank statement balance
	Add:
	Deposit of September 30
	Total
	Deduct:
		Checks No. 5893
		5906
		5908
	Adjusted bank balance					0
	Book balance of cash
	Add:
	Interest earned
	Proceeds of note less coll. fee
	Deduct:
	NSF check
	Error on check no. 5904
	Total
	Adjusted book balance					0
ELS COMPANY
General Journal
Date	Account Title			Debit	Credit
Sep 30	Cash
	Interest Earned					0
	To record interest earned.
30	Cash
	Collection Expense
	Notes Receivable					0
	To record note collection less fee.
30	Accts. Rec.-S. Nilson
	Cash					0
	To charge account for NSF check plus fee.
30	Computer Equipment
	Cash					0
	To correct an entry error.
The bank statement reveals that some of the prenumbered checks in the sequence are missing.
Describe three situations that could explain this.

Enter a short answer in the space provided.

Given P08-05A

Given Data P08-05A:
ELS COMPANY
August 31 bank reconciliation:
Outstanding checks:
	No. 5888	$ 1,038.05
	No. 5893	$ 484.25
From the September 30 bank statement:
September 30 Bank Statement:
Previous balance				$ 16,800.45
Total Checks and Debits				$ 9,620.05
Total Deposits and Credits				$ 11,182.85
Current Balance				$ 18,363.25
Checks and Debits				Daily Balance
Date Check	Amount			Date	Amount
09/03 5888	1,038.05			08/31	16,800.45
09/04 5902	731.90			09/03	15,762.40
09/07 5901	1,824.25			09/04	15,030.50
09/17 NSF	588.25			09/05	16,134.25
09/20 5905	937.00			09/07	14,310.00
09/22 5903	399.10			09/12	16,536.90
09/22 5904	2,080.00			09/17	15,948.65
09/28 5907	213.85			09/20	15,011.65
09/29 5909	1,807.65			09/21	19,104.65
				09/22	16,625.55
				09/25	18,977.25
Deposits and Credits				09/28	18,763.40
Date Description		Amount		09/29	16,955.75
09/05 Deposit		1,103.75		09/30	18,363.25
09/12 Deposit		2,226.90
09/21 Deposit		4,093.00
09/25 Deposit		2,351.70
09/30 Interest		22.50
09/30 Credit memo		1,385.00
From Els Company's Accounting Records:
	Cash Receipts Deposited:			Cash Disbursements:
Date	Cash Debit			Check No.	Cash Credit
Sept. 5	1,103.75			5901	1,824.25
12	2,226.90			5902	731.90
21	4,093.00			5903	399.10
25	2,351.70			5904	2,050.00
30	1,582.75			5905	937.00
	11,358.10			5906	859.30
				5907	213.85
				5908	276.00
				5909	1,807.65
					9,099.05
Cash					Acct. No. 101
Date Explanation		PR	Debit	Credit	Balance
Aug. 31 Balance					15,278.15
Sept. 30 Total receipts		R12	11,358.10		26,636.25
30 Total disbursements		D23		9,099.05	17,537.20
Check No. 5904 for computer equipment:
Entered in accounting records				$ 2,050.00
Correct amount of check				$ 2,080.00
Collection of Note:
Credit memorandum from bank				$ 1,400.00
Bank collection fee				$ 15.00
Check figures:
(1) Reconciled balance		$ 18,326.45
(2) Credit Note Receivable		$ 1,400.00