5. The Tuck Company discounted its own 60-day note for $9,000 with the bank on December 20X0. The discount rate was 6%. The bookkeeper recorded the proceeds as a cash receipt at the face value of the note.
6. The bookkeeper records customers’ dishonored checks as a reduction of cash receipts. When the dishonored checks are redeposited, they are recorded as a regular cash receipt. Two NSF checks for $180 and $220 were returned by the bank during December. The $180 check was redeposited, but the $220 check was still on hand at December 31. Cancellations of Tuck Company checks are recorded by a reduction of cash disbursements.
7. December bank charges were $20. In addition, a $10 service charge was made in December for the collection of a foreign draft in November. These charges were not recorded on the books.
8. Check 2540 listed in the November outstanding checks was drawn three years ago. Because the payee cannot be located, the president of Tuck Company agreed to the CPA’s suggestion that the check be written back into the accounts by a journal entry.
9. Outstanding checks at December 31, 20X0 totaled $4,000 excluding checks 2540 and 1504.
10. The bank had recorded a deposit of $2,400 on January 2, 20X1. The bookkeeper had recorded this deposit on the books on December 31, 20X0, and then mailed the deposit to the bank.
Required: Prepare a four-column reconciliation (“proof of cash”) of the cash receipts and cash disbursements recorded on the bank statement and on the company’s books for the month of December 20X0.