The bank portion of last month's bank reconciliation for Yap Ltd. at February 28 was as follows:

Question:

The bank portion of last month's bank reconciliation for Yap Ltd. at February 28 was as follows:

The bank portion of last month's bank reconciliation for Yap

The reconciled cash balance per bank agreed with the reconciled cash balance per books after the bank reconciliation at February 28. The March bank statement showed the following:

The bank portion of last month's bank reconciliation for Yap

Yap's cash receipts and payments for the month of March showed the following:

The bank portion of last month's bank reconciliation for Yap

Additional information:
1. The EFT loan payment should have been recorded by the company on March 15, but this entry was missed. The payment included $84 of interest and a $1,130 payment on the loan principal.
2. The bank made an error processing cheque #3472.
3. The EFT collection was not previously recorded.
4. Bank service charges and credit card fees totalling $89 were not previously recorded.
Instructions
(a) Calculate the unadjusted cash balance per books at March 31, prior to reconciliation.
(b) What is the amount of the deposits in transit at March 31?
(c) What is the amount of the outstanding cheques at March 31?
(d) Prepare the bank reconciliation at March 31.
(e) Prepare any journal entries required from the reconciliation.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Financial Accounting Tools for Business Decision Making

ISBN: 978-1119368458

7th Canadian edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine

Question Posted: