Please refer to problem 6.53 in your textbook. Please note that there is an image of the bank statement that you will want to review that is included with the problem in the textbook.
You must use the computer-based Electronic Workpapers in Excel on the textbook website to prepare the bank reconciliation solution. Please refer to Lynda.com video tutorials for assistance working with Excel. Lynda.com can be found on CSU-Global Library database.
Caulco Inc. is the audit client. The February bank statement is shown in Exhibit 6.3 in the text. You have obtained the client-prepared bank reconciliation as of February 28 (see the following).
Check 2231 was the first check written in February. All earlier checks cleared the bank, some during January and some during February. Assume that the only February-dated cancelled checks returned in the March bank statement are 2239 and 2240 showing the amounts listed in the February bank reconciliation. They cleared the bank on March 3 and March 2, respectively. The first deposit on the March bank statement was $1,097.69 credited on March 3. Assume also that all checks entered in Caulco's cash disbursements journal through February 29 have either cleared the bank or are listed as outstanding checks in the February bank reconciliation.
Determine whether any errors exist in the bank reconciliation. If errors exist, use Excel to prepare a corrected reconciliation and explain the problem. You should provide your explanation in the Excel document at the bottom of the workpaper.