7-9A Preparing a bank reconciliation and recording adjustments LO6 Stewart Recording Studio, owned by Ron Stewart, showed the following bank reconciliation at March 31: Stewart Recording Studio Bank Reconciliation March 31, 2020 Bank statement balance Add: Deposit of March 31 in transit Deducti Outstanding cheques: #14 #22 Adjusted bank balance $21,800 Book balance 9,862 $31,662 $30,525 $822 315 1,137 $30,525 Adjusted book balance $30,525 Cash Acct. No. 101 Date Explanation PR Debit Credit Balance 2020 March 31 Balance 30,525 April 30 30 CR17 71,203 CD13 90,305 101,728 11,423 A list of deposits made and cheques written during April. taken from the Cash Receipts Journal and Cash Disbursements Journal, is shown below. Deposits Made April 7 13 $ 687 4,579 26 23 5,676 13,841 27 30 1,745 44,475 A list of deposits made and cheques written during April, taken from the Cash Receipts Journal and Cash Disbursements Journal, is shown below Deposits Made April 7 13 $ 687 4,579 18 5,876 23 13,841 27 1,745 30 Total April Cash Receipts 44,475 $71,203 Cheques Written ces No. 23 $ 5,178 24 3,138 25 936 26 307 27 4,189 SER 201 29 30 4,900 19,419 40,510 31 32 409 11,319 Total April Cash Disbursements $90,305 The following bank statement is available for April Bank Statement To: Stewart Recording Studio Cheques/Charges April 30, 2020 Bank of Canada Deposits/Credits Balance 21,600 831 #20 04/03 04/07 409 9,400 04/03 9,862 31,253 04/07 687 22,540 #26 04/13 307 04/13 4,579 26,012 5 Lab 31 32 Total April Cash Disbursements 409 11,319 $90,305 The following bank statement is available for April: Bank Statement To: Stewart Recording Studio: Cheques/Charges April 30, 2020 Bank of Canada Deposits/Credits Balance 21,800 #31 04/03 409 04/03 9,862 31,253 #28 04/07 9,400 04/07 687 22,540 #26 04/13 307 04/13 4,579 26,812 NSF 04/18 14,058 04/18 5,876 18,630 ces #24 04/23 3,138 04/23 13,841 29,333 #23 04/27 5,178 04/27 1,745 25,900 #29 04/30 19,419 04/30 117,000 123,481 PHY 04/30 15,726 107,755 INT 04/30 SC 04/30 NSF Not Sufficient 424 177 SC Service 107,331 107,154 Funds Charge PMT Payment of Principal on the loan INT Interest on Bank Loan 4 . In reviewing cheques returned by the bank, the bookkeeper discovered that cheque #28, for delivery expense, was recorded in the Cash Disbursements Journal correctly as $4,900. The NSF cheque for $14,058 was that of customer Oprah Winney, deposited in March. On the bank statement, the payment for $15.726 is regarding a note payable. There is also a deposit of $117.000 dated April 30. It is an investment made by the owner into the business (the bank transferred the funds electronically from the owner's personal account to his business account, which is why it was not recorded in the Cash Receipts Journal) Lab Saved Help Save & Exit funds electronically from the owner's personal account to his business account, which is why it was not recorded in the Cash Receipts Journal). Required: a. Prepare a bank reconciliation for Stewart Recording Studio at April 30. Bank Statement. Bank statemont balance Add: ces STEWART RECORDING STUDIO Bank Reconciliation April 30, 2020 Company's Books Book balance Add: Deduct Deduct Outstanding cheques Adjusted bank balance Adjusted book balance 5 b. Prepare the necessary journal entries to bring the General Ledger Cash account into agreement with the adjusted balance on the bank reconciliation View transaction list Journal entry worksheet