2 1 Bank Reconciliation and Adjusting Entries (12 marks) On March 31, Riverbed Corporation showed a cash balance on their books of $14,000. The bank statement from the company's bank showed a month end balance of $17,871. On reviewing the bank statement, the following items were discovered: 3 1. A deposit made on March 29 for $4,550 did not appear on the bank statement. 4 2. Cheques written in the month of March but that did not appear on the bank statement were as follows: 5 Cheque # 6341 6 Cheque # 6342 $4,550 $325 7 Cheque # 6346 $46 8 Cheque # 6347 $1,075 9 $875 Cheque # 6348 3. The bank credited Riverbed's account for $550 on March 19. This deposit did not belong to Riverbed, but belonged to another company and was posted in error. 4. The bank statement showed receipt of a wire transfer of $1,400 in payment of a note receivable, as well as $126 interest. 5. According to the bank statement, $46 was deducted from Riverbed's account for service charges. 6. The bank cleared cheque # 6281 for $970; however, the cheque was recorded in Riverbed's records at $790. Research showed the bank was correct, and the cheque was recorded incorrectly in Riverbed's books. The cheque was written in payment of rent. 7. A cheque for $300 from one of Riverbed's customers was rejected by the bank due to insufficient funds (NSF). V1 New.. H