) In connection with an audit you are given the following work sheet: Bank Reconciliation, December 31, 2011 Balance per ledger December 31, 2011 $27,253.85 Add: Cash receipts received on the last day of December and charged to cash in bank on books but not deposited 3,715.27 Debit memo for customers check returned unpaid (check is on hand but no entry has been made on the books) 450.00 Debit memo for bank service charge for December 35.00 _________ $31,454.12 (continued on following page) Chapter 23 / AUDIT OF CASH BALANCES 753 *AICPA adapted. Required Apago PDF Enhancer Deduct: Checks drawn but not paid by bank (see detailed list below) $3,295.15 Credit memo for proceeds of a note receivable that had been left at the bank for collection but which has not been recorded as collected 1,200.00 Checks for an account payable entered on books as $297.50 but drawn and paid by bank as $694.50 397.00 (4,892.15) ________ _________ Computed balance 26,561.97 Unlocated difference 416.44 _________ Balance per bank (checked to confirmation) $26,978.41 Checks Drawn but Not Paid by Bank No. Amount 573 $ 267.27 724 39.92 903 454.67 907 291.80 911 648.29 913 737.52 914 529.10 916 36.00 917 117.26 __________ $ 3,295.15

a. Prepare a corrected reconciliation.

b. Prepare journal entries for items that should be adjusted prior to closing the books.*