You arc the senior auditor-in-charge of the July 31, 20XO, audit of Reliable Auto Parts, Inc.  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 20XO, 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 arc correct. You learn that the accountant for Reliable Auto Parts. Inc., 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.

Prepare a corrected four-column proof of cash in good form for Reliable Auto Parts,Inc.for the month of April 20XO.

RELIABLE AUTO PARTS,INC.

Proof of (.ash for April 20XO

July 31,20XO

	Balance 3/31/XO	Deposits	Checks	Balance 4/30/XO
Per bank statement	$ 71,682.84	$61,488.19	$ 68,119.40	$ 65,051.63
Depositsin transit: At 3/31/XO	2,118.1B			(2,118.18)
At 4/30/XO		4,918 .16		4,91B.16

 

Outstanding checks: At 3/31/XO

At 4/30/XO

Bank service charges:

March 20XO April20XO

Note receivable collected

 

 

(14,888.16)                                          14,888.16

(22,914.70)            22,914.70

 

(22.18)                                               22.18

(19.14)                   19.14

 

by bank 4/30/XO NSF check of customer		18,180.00		18,180.00
L. G.Waite, charged
back by bank 3/31/XO,
redeposited and cleared 4/3/XO	(418.19)	418.19
Balances as computed	58,472.49	85,004.54	60,095.90	108,964.45
Balances per book	59,353.23	45,689.98	76,148.98	28,894.23
Unallocated difference	$    (880.74)	$39,314.56	$(16.053 .08)	$ 80,071.22