The cash data of Durkin Automotive for April 2012 follow:

Durkin received the following bank statement on April 30, 2012:

Additional data for the bank reconciliation include the following:
a. The EFT deposit was a receipt of monthly rent. The EFT debit was a monthly insurance payment.
b. The unauthorized signature check was received from a customer.
c. The correct amount of check number 3115, a payment on account, is $1,380. (Durkin's accountant mistakenly recorded the check for $1,830.)

Requirements

1. Prepare the Durkin Automotive bank reconciliation at April 30, 2012.

2. Describe how a bank account and the bank reconciliation help the general manager control Durkin's cash.

Transcribed Image Text:

Cash Account No. 101 Jrnl. Ref. Debit Credit Balance Apr 1 9,069 16,369 CP11 9,850 Cash Receipts (CR) Cash Payments (CP) Cash Debit $2,719 1,661 Date Cash Credit Apr 2 $1,524 1 9 2 Total $9,069 Bank Statement for April 2012 7,300 Beginning balance Deposits and other additions: S 625 EFT Apr 1 4 2,719 507 1,661 827 415 12 17 23 1,375 BC8,129 Checks and other deductions: S1,524 1,380 Apr 7 13 14 15 18 21 26 30 45S US 1,601 43 397 EFT 839 120 10SC (6,369) 9,060 ing balance