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4:53:Bank Reconciliation ProblemAccounting 321 – Professor DauberThe following client-prepared bank reconciliation isbeing examined by Dewey, Cheatum, and Howe, CPAs,during an audit of the financial statements of Stin KinCompany:Stin Kin CompanyBANK RECONCILIATIONVILLAGE BANK ACCOUNT 2December 31, 2014Balance per bank (a)$18,375.91Deposits in Transit (b)12/301,471.1012/312,840.694,311.79Subtotal22,687.70Outstanding checks (c)8376,000.001941671.801966320.0019841,855.4219853,621.2219872,576.19914,420.88(19,466.21)Subtotal3,2NSF check returned12/29 (d)200.00Bank charges5.50Error Check No. 1932148.10Customer note collectedby the bank ($2,750 plus$275 interest) (e)( 3,025.00)Balance per books (f)550.09Required:1. State one or more audit procedures that should be performedby the auditors in gathering evidence in support of each of theitems (a) through (f) above.2. Redraft the bank reconciliation using the Dauber Method, asdiscussed in class.This problem was adapted from the May 1983 CPA Exam.
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