You are auditing general cash for the Honolulu Supply Company for the fiscal year ended March 31, 2016. The client has not prepared the March 31 bank reconciliation. After a brief discussion with the owner, you agree to prepare the reconciliation, with assistance from one of Honolulu Supply's clerks. You obtain the following information: (Click the icon to view info for March.) (Click the icon to view the February 28 bank rec.) Additional information obtained is as follows: Requirement a. Prepare a bank reconciliation that shows both the unadjusted and adjusted balance per books. (If a box is not used in the table, leave the box empty; do not select a label or enter a zero.) Bank Reconciliation, March 31, 2016 General Ledger 7,732 $ $ Bank Statement 9,576 25,672 26,336 (25,841) Beginning balance 3/1/16 Deposits Cash receipts journal Checks cleared Cash disbursements journal March bank service charge Note paid directly NSF check Ending balance 3/31/16 (23,793) (84) (5,100) (2,542) $ 10,275 $ 1,681 $ February 28 Bank Reconciliation Information in General Ledger and Bank Statement Balance per bank $ 9,576 Deposits in transit 620 Outstanding checks 2,464 Balance per books $ 7,732 a. b. c. Prepare a bank reconciliation that shows both the unadjusted and adjusted balance per books. Prepare all adjusting entries. What audit procedures would you use to verify each item in the bank reconciliation? What is the cash balance that should appear on the March 31, 2016, financial statements? d. You are auditing general cash for the Honolulu Supply Company for the fiscal year ended March 31, 2016. The client has not prepared the March 31 bank reconciliation. After a brief discussion with the owner, you agree to prepare the reconciliation, with assistance from one of Honolulu Supply's clerks. You obtain the following information: (Click the icon to view info for March.) (Click the icon to view the February 28 bank rec.) Additional information obtained is as follows: Requirement a. Prepare a bank reconciliation that shows both the unadjusted and adjusted balance per books. (If a box is not used in the table, leave the box empty; do not select a label or enter a zero.) Bank Reconciliation, March 31, 2016 General Ledger 7,732 $ $ Bank Statement 9,576 25,672 26,336 (25,841) Beginning balance 3/1/16 Deposits Cash receipts journal Checks cleared Cash disbursements journal March bank service charge Note paid directly NSF check Ending balance 3/31/16 (23,793) (84) (5,100) (2,542) $ 10,275 $ 1,681 $ February 28 Bank Reconciliation Information in General Ledger and Bank Statement Balance per bank $ 9,576 Deposits in transit 620 Outstanding checks 2,464 Balance per books $ 7,732 a. b. c. Prepare a bank reconciliation that shows both the unadjusted and adjusted balance per books. Prepare all adjusting entries. What audit procedures would you use to verify each item in the bank reconciliation? What is the cash balance that should appear on the March 31, 2016, financial statements? d
