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During the audit of Sunset Building Supply, you are given the following year-end bank reconciliation...

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Accounting

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During the audit of Sunset Building Supply, you are given the following year-end bank reconciliation prepared by the client: SUNSET BUILDING SUPPLY Bank Reconciliation December 31 Balance per 12/31 bank statement Add: Deposits in transit $ 48,834 4,477 $ 53,311 20,800 $ 32,511 Less: Checks outstanding Balance per ledger, 12/31 According to the client's accounting records, checks totaling $31,548 were issued between January 1 and January 14 of the following year. You have obtained a cutoff bank statement dated January 14 containing paid checks amounting to $50,546. Of the checks outstanding at December 31, checks totaling $3,608 were not returned in the cutoff statement, and of those issued per the accounting records in January, checks totaling $8,218 were not returned. Required: Prepare a working paper comparing (1) the total of all checks returned by the bank or still outstanding with (2) the total per the client's records of checks outstanding at December 31 plus checks issued from January 114. SUNSET BUILDING SUPPLY Comparison of Checks and Disbursements December 31 Checks returned or still outstanding: Disbursements per client records: Excess of checks returned or outstanding over disbursements per client records

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