The cash data of Durkin Automotive for April 2012 follow:
CashDateApr 13030ItemBalanceJrnl. Ref.CR6CP11Debit9,069Credit9,850Account No.101Balance7,30016,3696,519
Cash Receipts (CR)DateApr. 281016222930Total Cash Debit$2,7195071,6618274158952,048$9,069Cash Payments (CP) Check No. 3113311431153116311731183119312031213122TotalCash Credit$1,524 1,601 1,830438391204259871772,304$9,850
Durkin received the following bank statement on April 30, 2012: Bank Statement for April 2012
Beginning balance Deposits and other additions: Apr 14912172223Checks and other deductions: Apr 7 1314151821263030Ending balance $ 625 EFT2,719 5071,661 8274151,375 BC$1,524 1,380 455 US1,60143397 EFT83912010 SC$7,3008,129(6,369) $ 9,060
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.) Prepare the Durkin Automotive bank reconciliation at April 30, 2012. Describe how a bank account and the bank reconciliation help the general manager control Durkin’s cash.