Using the reconciling items below, prepare a bank reconciliation for the September 30, 2021 year end. For every item on the bank reconciliation, explain what supporting evidence you would obtain to test the item (be specific, do not just say “look at supporting
Using the reconciling items below, prepare a bank reconciliation for the September 30, 2021 year end. For every item on the bank reconciliation, explain what supporting evidence you would obtain to test the item (be specific, do not just say “look at supporting documentation”). Also, provide your conclusion – based on your bank reconciliation, is the cash balance in the client’s books correct? If not – quantify the error.
1. Cash balance per client $100,000
2. Cash balance per the bank statement $100,000
3. The company wrote mailed the following cheques on September 30, 2021, which did not get cashed until October 2, 2021.
a. Cheque 1234 $2,000
b. Cheque 2345 $4,000
c. Cheque 3456 $1,000
4. In September, the company wrote a check for $520 to pay for office supplies, but recorded it as $52.
5. In September, the company received a payment from a customer for $700, but this turned out to be an NSF cheque returned by the bank.
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