During the audit of Sunset Building Supply, you are given the following year-end bank reconciliation prepared by the client: SUNSET BUILDING SUPPLY Bank Reconciliation December 31 Balance per 12/31 bank statement $ 49,044 Add: Deposits in transit 4,498 $ 53,542 Less: Checks outstanding 20,889 Balance per ledger, 12/31 $ 32,653

According to the clients accounting records, checks totaling $31,686 were issued between January 1 and January 14 of the following year. You have obtained a cutoff bank statement dated January 14 containing paid checks amounting to $50,767. Of the checks outstanding at December 31, checks totaling $3,624 were not returned in the cutoff statement, and of those issued per the accounting records in January, checks totaling $8,254 were not returned.

Required:

Prepare a working paper comparing (1) the total of all checks returned by the bank or still outstanding with (2) the total per the clients records of checks outstanding at December 31 plus checks issued from January 114.