The auditor has gathered the following information to test the accuracy of the one prepared by the controller. In particular, the auditor is testing the accuracy of the outstanding cheques. Use the following information to prepare the bank reconciliation and calculate what the total of the outstanding cheques should be.

1. Cash balance - March 31 $39,500 2. Outstanding Deposits $13,810

3. NSF cheque from a customer $750 4. Bank Statement Balance - March 31 $127,100

5. The bank recorded a deposit as $10,000 when the deposit was actually $1,000

6. The bank credited the company's bank account with $3,900 of interest earned

7. The bank statement showed an EFT from a customer for $16,300

8. The bank charged a service charge of $45

9. The company posted cheque #1730 as $890 when the actual amount was properly debited by the bank for $980

Question 51 options:

Outstanding cheques = $76,995

Outstanding cheques = $56,795

Outstanding cheques = $82,095

Outstanding cheques = $73,095