| | Cheques and Other Debits Cheques and Other Debits Date Number Amount Deposits Amount Feb. 28 $12,742 Mar. 3 3470 $1,535 $2,530 13,737 4 3471 845 12,892 6 3472 1,427 1,221 12,686 7 3473 275 12,411 10 NSF 595 11,816 11 3475 487 1,745 13,074 14 3477 915 12,159 17 3476 1,828 2,283 12,614 20 1,832 14,446 21 3474 2,330 12,116 26 3478 1,080 2,657 13,693 31 LN 1,125 12,568 31 3480 1,679 10,889 31 SC Additional information: The bank statement contained three debit memoranda: An NSF cheque of $595 that Yap had deposited was returned due to insufficient funds in the maker's bank account. This cheque was originally given to Yap by Mr. Jordan, a customer, in payment of his account. Yap believes it will be able to collect this amount from Mr. Jordan. A bank loan payment (LN), which included $125 of interest and a $1,000 payment on the principal. (Hint: Use Notes Payable.) A service charge (SC) of $49 for bank services provided throughout the month. The bank statement contained one credit memorandum for $23 of interest (IN) earned on the account for the month. The bank made an error processing cheque #3478. No other errors were made by the bank. Yap's unadjusted cash balance per its general ledger on March 31 is $8,495. Yap's list of cash receipts and cash payments showed the following for March: Cash Receipts Cash Payments Date Amount Date Cheque No. Amount Mar. 5 $ 1,221 Mar. 3 3472 $ 1,427 10 1,745 4 3473 725 14 2,283 6 3474 2,330 20 1,832 7 3475 487 25 2,675 13 3476 1,828 31 1,025 14 3477 915 Total $10,781 19 3478 1,380 21 3479 159 28 3480 1,679 31 3481 862 31 3482 1,126 Total $12,918 The bank portion of the previous month's bank reconciliation for Yap Co. at February 28, 2021, was as follows: YAP CO. Bank Reconciliation February 28, 2021 Cash balance per bank $12,742 Add: Deposits in transit 2,530 15,272 Less: Outstanding cheques #3451 $2,260 #3470 1,535 #3471 845 4,640 Adjusted cash balance per bank $10,632 Instructions a. Prepare a bank reconciliation at March 31. b. Prepare the necessary adjusting entries at March 31. (Note: The correction of any errors in the recording of cash receipts should be made to Accounts Receivable.) Taking It Further The company will prepare entries to record items found in the above bank reconciliation (see part [b] in the instructions). Describe any other follow-up actions required regarding the other reconciling items in Yap Co.'s bank reconciliation. |
