Ist, the January bank reconciliation doesn't clation because he had notified the bank to stop payment on them and he ra on the reconciliation because he had notified the bank to stop payment on them and he he Cashier (who works I LaVE DEh outstanding for a long time. The cashier told me that these checks ind needn 't had made the o appearary adjustment on the books. Does that sound reasonable to you? h, Kate shows you the following (unaudited) January 31, 2016, bank reconciliation At your requet,Kment by the cashier: n the pro- , identify You may iples will KATE'S CARDS January 31, 2016 4,843.69 Balance from general ledger Bank Reconcililation balance from bank stat Deposits in transit recorded $10,893.89 7238.40 $12,082.09 ring the e com- Less Bank service charge.... Unrecorded credit...1200.00 (1.260 $ 60.00 sales. s to be 2351$1,100.20 578.32 No.2359 No 2354 969.68 (2.448.20 $9,633.89 Reconciled cash balance.. $ 9,633.89 eanciled cash balance You discover that the $1,200 unrecorded bank credit represents a note collected by the bank on Kate's behalf, it appears in the deposits column of the January bank statement. Your investigation also ereals that the December 31, 2015, bank reconciliation showed three checks that had been outstanding longer than 10 months: No. 1432 for $600, No. 1458 for $466.90, and No. 1512 for $253.10. You also discover that these items were never added back into the Cash account in Kate's books. In confirming that the checks shown on the cashier's January 31 bank reconciliation were outstanding on that date, you discover that check No. 2353 was actually a payment of S1,658.32 and had been recorded on the ndi- e of To confirm the amount of undeposited receipts at January 31, you request a bank statement for February 1-12 (called a cutoff bank statement). This indeed shows a January 1 deposit of $7.238.40. books for that amount