Financial Accounting: An Integrated Statements Approach, 2nd Edition

320 Chapter 7 Sarbanes-Oxley, Internal Control, and Cash

32.26 535.09 ACH 932.00 07/29 3,404.40

21.10 126.20 705.21 07/30 3,962.31

SC 18.00 MS 408.00 07/30 4,352.31

26.12 ACH 1,615.13 648.72 07/31 3,359.78

* * * * * * * * *

THE RECONCILEMENT OF THIS STATEMENT WITH YOUR RECORDS IS ESSENTIAL.

ANY ERROR OR EXCEPTION SHOULD BE REPORTED IMMEDIATELY.

EC –– ERROR CORRECTION ACH –– AUTOMATED CLEARING HOUSE

MS –– MISCELLANEOUS

NSF –– NOT SUFFICIENT FUNDS SC –– SERVICE CHARGE

PAGE 1

VALLEY NATIONAL BANK

OF LOS ANGELES

LOS ANGELES, CA 90020-4253 (310)555-5151

MEMBER FDIC

ACCOUNT NUMBER 1627042

FROM 6/30/07 TO 7/31/07

BALANCE 4,218.60

DEPOSITS 13,749.75

WITHDRAWALS 14,698.57

OTHER DEBITS

AND CREDITS 90.00CR

NEW BALANCE 3,359.78

22

52

3

POWER NETWORKING

1000 Belkin Street

Los Angeles, CA 90014 -1000

*– – CHECKS AND OTHER DEBITS – – – *– – – DEPOSITS – – *– – DATE – – *– – BALANCE – – *

819.40 122.54 585.75 07/01 3,862.41

369.50 732.26 20.15 421.53 07/02 3,162.03

600.00 190.70 52.50 781.30 07/03 3,100.13

25.93 160.00 662.50 07/05 3,576.70

921.20 NSF 300.00 503.18 07/07 2,858.68

Exhibit 5

Bank Statement

Liability

Depositor’s Account

Asset

Balance XXX

Depositor Bank

Decreases in liability

Debit memorandum

EFT payments

Service charges

NSF checks

Bank errors

Increases in liability

Credit memorandum

EFT deposits

Notes receivable

collections

Loan proceeds

Interest earned

Bank errors

Cash in Bank

Balance XXX

IncreaInnccreases assetses ases asses assett Decreaeaases assets assse

debit memorandum entry on the bank statement indicates a decrease (a debit) in the

depositor’s account. This relationship is shown below.