Attached is a poorly constructed Bank Reconciliation. Instructions: 1. Follow the directions contained in the referenced file. In essence: 2. On a new sheet of paper, prepare a balanced and properly formatted bank reconciliation for Arial Surf Shop. 3. Prepare the necessary journal entries to the balance in Cash to the reconciled balance of Cash.

ARIAL SURF SHOP BANK RECONCILIATION FOR THE PERIOD ENDED APRIL 30, 2019 Bank Statement: Cash balance on April 30, 2019 Bank Statement $ 9,094.00 ~ ADD: Collections f/b/o Arial Surf Shop Outstanding Checks: Ck No. 601 1,200.00 596.00 1,796.00 B DEDUCT: Error on Check No. 571 90.00 90.00 Reconciled Cash balance on April 30, 2019 $ 10,800.00 General Ledger or Checkbook Register: Cash balance on April 30, 2019 per General Ledger $ 8,366.00 ADD: Customer NSF check Bank Service Charge Deposit in Transit 60.00 14.00 941.00 1,015.00 DEDUCT: Interest Revenue 37.00 37.00 Reconciled Cash balance on April 30, 2019 $ 9,344.00 INSTRUCTIONS: The Bank Reconciliation above is very wrong. = At least the previous bookkeeper got these two values properly located on Bank Reconciliation! 1. Prepare a corrected Bank Reconciliation as of April 30, 2019. (CkFig: Reconciled Cash = $9,439) Note: Check No. 571 was written the amount of $546, recorded in accounting records as $456. 2. Draft necessary journal entries. Notes: A. Assume the $1,200 is collection of a past due account and includes a $50 late charge. (the late charge has not been accrued (i.e., recorded) previously) Assume Check No. 571(dated April 5) was written to the sole shareholder as a dividend