P7-3B The cash receipts and the cash payments of Good Eats Caf for April 20X4 are as follows: Cash Receipts (Posting reference is CR) Cash Payments (Posting reference is CP) Date Cash Debit Check No. Cash Credit Apr. 2 $ 4.174 3113 S 891 8 407 3114 147 10 559 3115 1.930 16 2.187 3116 664 22 1,854 3117 1.472 29 1.060 3118 1.000 30 337 3119 632 Total $10.578 3120 1.675 3121 100 3122 2.413 Total $10.924 The Cash account of Good Eats Caf shows the following at April 30, 20X4: Cash Date Item Jrnl. Ref. Debit Credit Balance Apr. 1 Balance 5.911 30 CR. 6 10.578 16.489 30 CP. 11 10.924 5.565 On April 30, 20X4. Good Eats received the bank statement shown on the top of Additional data for the bank reconciliation: page 304.

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

b. The unauthorized-signature check was received from S. M. Holt.

c. The $1.368 bank collection of a note receivable included $185 interest revenue.

d. The correct amount of check number 3115, a payment on account, is $1.390. (Good Eats accountant mistakenly recorded the check for $1.930.) Required 1. Prepare the Good Eats Caf bank reconciliation at April 30, 20X4. 2. Describe how a bank account and the bank reconciliation help Good Eats managers control the business's cash. See the bank statement at the top of page 304.