Question
As part of the 2019 audit, we have been contracted to aid in certain office procedures for CPA Movies. Your main responsibility will be to
As part of the 2019 audit, we have been contracted to aid in certain office procedures for CPA Movies. Your main responsibility will be to perform monthly bank reconciliations to ensure the cash balance is correct before the auditors arrive. Upon receipt of the February 2019 bank statement, it was determined that the balance on the statement was $12,720. You retained the general ledger from bookkeeping and realize the booked balance in "Cash in Bank" was $20,850. The bookkeeper indicated a deposit was made in transit for $9,000 and an outstanding check was noted in the amount of $2,000. Review of the statement also indicated an electronic funds transfer of $100 and interest in the amount of $30. The bank also indicated a service charge of $20. Our utility pay auto drafted $40. Finally some jerk paid $1,200 of an insufficient check. Perform the February 2019 bank reconciliation.
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