P5-62A. (Learning Objective 3: Using the bank reconciliation as a control device) The cash data of Dursley Automotive for July 20X6 follow:

Dursley received the following bank statement on July 31, 20X6:

Additional data for the bank reconciliation include the following:

a. The EFT deposit was a receipt of monthly rent. The EFT debit was a monthly insurance payment.

b. The unauthorized signature check was received from a customer.

c. The correct amount of check number 3115, a payment on account, is $1,260. (Dursley’s accountant mistakenly recorded the check for $1,620.)

Requirements 1. Prepare the Dursley Automotive bank reconciliation at July 31, 20X6.
2. Describe how a bank account and the bank reconciliation help the general manager control Dursley’s cash.

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Cash Date Item Jrnl. Ref. Debit Credit Account No. 101 Balance Jul. 1 Balance 7,900 31 CR6 9,154 17,054 31 CP11 9,097 7,957 Cash Receipts (CR) Cash Payments (CP) Date Cash Debit Check No. Cash Credit Jul. 2 $2,771 3113 $1,503 8 516 3114 1,149 10 1,682 3115 1,620 16. 871 3116 19 22 352 3117 825 29 934 3118 91 30 2,028 3119 450 Total $9,154 3120 975 3121 215 3122 2,250 Total $9,097