Straightforward Bank Reconciliation Study Appendix 6. The City of Royalton has a checking account with First National Bank. The city's cash balance on February 28, 20X1, was $30,000. The deposit balance on the bank's books on February 28, 20X1, was also $30,000. The following transactions occurred during March.

Check Date Number Amount 3/1 261 $11,000 3/6 262 9,000 3/10 12,000 3/14 263 14,000 3/17 16,000 3/28 264 8,000 3/30 265 21,000 3/31 25,000 Explanation Payment of previously billed consulting fee Payment of accounts payable Collection of taxes receivable Acquisition of equipment for cash Collection of license fees receivable Payment of accounts payable Payment of interest on municipal bonds Collection of taxes receivable All cash receipts are deposited via a night depository system after the close of the municipal business day. Therefore, the receipts are not recorded by the bank until the succeeding day. On March 31, the bank charged the City of Royalton $100 for miscellaneous bank services. 1. Prepare the journal entries on the bank's books for check 262 and the deposit of March 10. 2. Prepare the journal entries for all March transactions on the books of the City of Royalton. 3. Post all transactions for March to T-accounts for the City's Cash in Bank account and the bank's Deposit account. Assume only checks 261 to 263 have been presented to the bank in March, each taking 4 days to clear the bank's records.

4. Prepare a bank reconciliation for the City of Royalton, March 31, 20X1. The final three City of Royalton transactions of March had not affected the bank's records as of March 31. What adjust- ing entry in the books of the City of Royalton is required on March 31? 5. What would be the cash balance shown on the balance sheet of the City of Royalton on March 31, 20X1?