At the end of March, the Elbert Company records showed a cash balance of \(\$ 7027\). When comparing the 31 March bank statement with the business' Cash account, the business discovered that deposits in transit were \(\$ 725\), outstanding cheques totalled \(\$ 862\), bank service charges were \(\$ 28\) and NSF cheques totalled \(\$ 175\).

Required:

a Calculate the 31 March reconciled cash balance of the Elbert Company.

b Calculate the cash balance listed on the 31 March bank statement.