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You are the senior auditor-in-charge of the July 31, 20X0, audit of Reliable Auto Parts, Incorporated Your newly hired staff assistant reports to you
You are the senior auditor-in-charge of the July 31, 20X0, audit of Reliable Auto Parts, Incorporated Your newly hired staff assistant reports to you that she is unable to complete the four-column proof of cash for the month of April 20X0, which you instructed her to do as part of the consideration of internal control over cash. Your assistant shows you the working paper that she has prepared. Your review of your assistant's work reveals that the dollar amounts of all the items in her working paper are correct. You learn that the accountant for Reliable Auto Parts, Incorporated makes no journal entries for bank service charges or note collections until the month following the bank's recording of the item. In addition, Reliable's accountant makes no journal entries whatsoever for NSF checks that are redeposited and cleared. Your assistant's working paper appears below. Per bank statement Deposits in transit: At 3/31/X0 At 4/30/X0 Outstanding checks: At 3/31/X0 At 4/30/X0 Bank service charges: March 20x0 RELIABLE AUTO PARTS INCORPORATED Proof of Cash for April 20x0 July 31, 20x0 Balance 3/31/X0 Deposits $ 72,407.84 $ 62,108.14 Checks $ 68,819.28 Balance 4/30/X0 $ 65,696.70 2,139.61 4,967.78 (15,038.77) 15,038.77 (23,146.52) (2,139.61) 4,967.78 23,146.52 (22.38) April 20x0 Note receivable collected by bank 22.38 (19.34) 19.34 4/30/X0 18,380.00 18,380.00 NSF check of customer L. G. Waite, charged back by bank 3/31/X0, redeposited and cleared 4/3/X0 (421.99) Balances as computed Balances per book Unlocated difference 59,064.31 59,953.05 421.99 85,877.91 46,134.32 60,714.57 76,930.07 110,070.73 29,157.30 $ (888.74) $ 39,743.59 $ (16,215.50) $ 80,913.43 Required: Prepare a corrected four-column proof of cash in good form for Reliable Auto Parts, Incorporated for the month of April 20X0. (Negative amounts should be indicated by a minus sign Round your answers to 2 decimal places
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