(Learning Objective 3: Using the bank reconciliation as a control device) The cash data of Donald Automotive for January 20X6 follows:

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 expense.

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

c. The correct amount of cheque number 3115, a payment on account, is €1,350.
(Donald’s accountant mistakenly recorded the cheque for €1,530.)
❙ Requirements 1. Prepare the Donald Automotive bank reconciliation at January 31, 20X6.
2. Describe how a bank account and the bank reconciliation help the general manager control Donald’s cash.