Information about Bond Ltd’s cash position for the month of December is presented below:

1. The general ledger Cash at Bank account had a balance of $21 200 on 30 November.

2. The cash receipts journal showed total cash receipts of $292 704 for December.

3. The cash payments journal showed total cash payments of $265 092 for December.

4. The December bank statement reported a bank balance of $41 184 on 31 December.

5. Outstanding cheques at the end of December were: no. 3456, $1448; no. 3457, $84; no. 3460, $70 and no. 3462, $410.

6. Cash receipts of $10 090 for 31 December were placed in the bank’s night safe on 31 December and were not included in the December bank statement.

7. Comparison of the presented cheques with the entries in the cash payments journal disclosed that cheque no. 3442 for $846, for purchases expense, had been wrongly recorded as $864.

8. Included on the bank statement were:

(a) A dishonoured cheque written by James Ltd, a client, for $136

(b) A credit for an electronic transfer from a customer of $644 and a credit for interest earned of $44

(c) Account and transaction fees, $120.

Required

A. Set up cash receipts and cash payments journals with totals shown, and enter the necessary adjustments, and complete the journals for December.

B. Po st the journals in requirement A to the general ledger Cash at Bank account and balance the account.

C. Prepare a bank reconciliation statement at 31 December.

D. What is the amount of cash that should be reported on the 31 December balance sheet?