Question

The following information is available for Pyle Garage for March, Year 2:

BANK STATEMENT HAZARD STATE BANK 215 MAIN STREET HAZARD, GA 30321
Pyle Garage 629 Main Street HAZARD, GA 30321						Account number 62-00062 March 31, Year 2
Beginning balance 3/1/Year 2						$9,070
Total deposits and other credits						30,096
Total checks and other debits						25,024
Ending balance 3/31/Year 2						14,142
	Checks and Debits					Deposits and Credits
	Check No.		Amount			Date		Amount
		1462	$	3,795		March	1	$	1,140
		1463		1,684		March	2		6,548
		1464		8,040		March	6		4,976
		1465		2,946		March	12		6,209
		1466		1,449		March	17		6,006
		1467		6,220		March	22		2,126
		DM		60		CM			3,091
		1468		830

The following is a list of checks and deposits recorded on the books of Pyle Garage for March, Year 2:

Date			Check No.	Amount of Check			Date			Amount of Deposit
March	1		1463	$	1,684		March	1		$	6,548
March	5		1464		8,040		March	5			4,976
March	6		1465		2,946
March	9		1466		1,449		March	10			6,209
March	10		1467		6,220
March	14		1468		135		March	16			6,006
March	19		1469		1,539		March	19			2,126
March	28		1470		783		March	29			3,587

Other Information

1. Check no. 1462 was outstanding from February.

2. A credit memo for collection of accounts receivable was included in the bank statement.

3. All checks were paid at the correct amount.

4. The bank statement included a debit memo for service charges.

5. The February 28 bank reconciliation showed a deposit in transit of $1,140.

6. Check no. 1468 was for the purchase of equipment.

7. The unadjusted Cash account balance at March 31 was $13,071.

Required:

1. Prepare the bank reconciliation for Pyle Garage at the end of March.

2. Explain how the adjustments described above affect the cash account.

Answer 1

To notes Receivables All Ans. PILE GARAGE (a) BANK RECONCILIATION MARCH 31 Bank : Balance as per Bank Statement, march 31 ADO" Delosit in transit 14142 3587 Less! outstanding Checks", 1539 Check Ne, 1469 Check Ne. 1470 783 (2322) 15407 13071 goal Books: Balance as per Depositor Records, march 31 Add: Alcout Receivables collected by Bank service charges Error on chick No. 1468 (830-135) 60 Less: 695 755 15407 Adjusting Jarrual Entries 16) Dr. 3091 Mar-311 Cash All 3091 DY 60 695 Mar-31 service charges All Equipment All To cash Ale or 755

Note: The Deposite in transit and outstanding check of february have already been included in February mouth's BRS. Hence, to reflection of the same is required in march Morthis BRS.