The following information is available for delta company as of April 30, 2014: a. Cash on the books as of April 30 amounted to $114,175.28. Cash on the bank statement for the same date was $141,717.08 b. A deposit of $14,249.84, representing cash receipts of April 30, did not appear on the bank statement c. Outstanding checks total $7,293.64. d. A check for $2,420.00 returned with the statement recorded as $2024.00. The check was for advertising. e. The bank service charge for April amounted to $26.00. f. The bank collected $36,400.00 for delta company on a note. The face value of the note was $36,000.00. g. An NSF check for $1,140.00 from a customer, hasan Ali, was returned with the statement. h. The bank mistakenly deducted a check for $800.00 that was drawn by alpha corporation. i. The bank reported a credit of $460.00 for interest on the average balance. required 1. Why is a bank reconciliation a necessary internal control?
The following information is available for delta company as of April 30, 2014:
a. Cash on the books as of April 30 amounted to $114,175.28. Cash on the bank statement for the same date was $141,717.08
b. A deposit of $14,249.84, representing cash receipts of April 30, did not appear on the bank statement
c. Outstanding checks total $7,293.64.
d. A check for $2,420.00 returned with the statement recorded as $2024.00. The check was for advertising.
e. The bank service charge for April amounted to $26.00.
f. The bank collected $36,400.00 for delta company on a note. The face value of the note was $36,000.00.
g. An NSF check for $1,140.00 from a customer, hasan Ali, was returned with the statement.
h. The bank mistakenly deducted a check for $800.00 that was drawn by alpha corporation.
i. The bank reported a credit of $460.00 for interest on the average balance.
required
1. Why is a bank reconciliation a necessary internal control?
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