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Problem 4-22 Bank reconciliation and adjustments to the cash account
CHECK FIGURE
True Cash Balance, March 31, 2018: $16,398
The following information is available for Pyle Garage for March 2018:
Pyle Garage, Account number 62-00062
| Beginning balance 3/1/2018 | $15000.00 |
| Total deposits and other credits | 7000.00 |
| total checks and other debits | 6000.00 |
| Ending balance 3/31/2018 | 16000.00 |
Checks and Debits Deposits and Credits
| Check No. | Amount | Date | Amount |
| 1462 | $1163.00 | March 1 | $1000.00 |
| 1463 | 62.00 | March 2 | 1340.00 |
| 1464 | 1235.00 | March 6 | 210.00 |
| 1465 | 750.00 | March 12 | 1940.00 |
| 1466 | 1111.00 | March 17 | 855.00 |
| 1467 | 964.00 | March 22 | 1480.00 |
| DM | 15.00 | CM | 175.00 |
| 1468 | 700.00 | | |
The following is a list of checks and deposits recorded on the books of Pyle Garage for March 2018:
| Date | Check No. | Amount of Check | Date | Amount of Deposit |
| March 1 | 1463 | $62.00 | March 1 | $1340.00 |
| March 5 | 1464 | 1235.00 | March 5 | 210.00 |
| March 6 | 1465 | 750.00 | | |
| March 9 | 1466 | 1111.00 | March 10 | 1940.00 |
| March 10 | 1467 | 964.00 | | |
| March 14 | 1468 | 70.00 | March 16 | 855.00 |
| March 19 | 1469 | 1500.00 | March 19 | 1480.00 |
| March 28 | 1470 | 102.00 | March 29 | 2000.00 |
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Other Information
Check no. 1462 was outstanding from February.
A credit memo for collection of accounts receivable was included in the bank statement.
All checks were paid at the correct amount.
The bank statement included a debit memo for service charges.
The February 28 bank reconciliation showed a deposit in transit of $1,000.
Check no. 1468 was for the purchase of equipment.
The unadjusted Cash account balance at March 31 was $16,868.
Required
Prepare the bank reconciliation for Pyle Garage at the end of March.
Explain how the adjustments described above affect the cash account.
PROBLEM 4-22
a.
| Pyle Garage Bank Reconciliation March 31, 2018 |
| | | |
| Unadjusted Bank Balance, March 31, 2018 | | $ |
| Add: | | |
| Less: | $ | |
| | | |
| True Cash Balance, March 31, 2018 | | $ |
| | | |
| Unadjusted Book Balance, March 31, 2018 | | $ |
| Add: | | |
| Less: | $ | |
| | | |
| True Cash Balance, March 31, 2018 | | $ |
| | | |
b.
| Item No. | Affect on the cash account: |
| 1. | |
| 2. | |
| 3. | |
| 4. | |
| 5. | |
| 6. | |
Answer & Explanation
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