Situation: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 Part, Inc. makes no journal entries for the 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. (see image)Question:(a) Can you help me prepare a corrected four-column proof of cash as of April 30, 20x0. (b) Please include solutions and/or adjusting entries. RELIABLE AUTO PARTS, INC.Proof of Cash for April 20XOJuly 31, 20XOBalanceBalance3/31/XODepositsChecks4/30/XOPer bank statement$ 71,682.84$61,488.19$ 68,119.40$ 65,051.63Deposits in transit:At 3/31/XO2,118.18(2,118.18)At 4/30/XO4,918.164,918.16Outstanding checks:At 3/31/XO(14,888.16)14,888.16At 4/30/XO(22,914.70)22,914.70Bank service charges:March 20X0(22.18)22.18April 20X0(19.14)19.14Note receivable collected by bank 4/30/XO18,180.0018,180.00NSF check of customer L. G. Waite, charged back by_(418.19)418.19bank 3/31/X0, redeposited and cleared 4/3/X0Balances as computed58,472.4985,004.5460,095.90108,964.45Balances per book59,353.2376,148.9828,894.2345,689.98Unlocated difference$ (880.74) $39,314.56$(16,053.08)$ 80,071.22

Bank reconciliation statement means matching and checking the balances as per bank and cash book and…

Answered: Can you help me prepare a corrected…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Situation:

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 Part, Inc. makes no journal entries for the 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.

(see image)

Question:

(a) Can you help me prepare a corrected four-column proof of cash as of April 30, 20x0. (b) Please include solutions and/or adjusting entries.