Larry is trying to complete a bank reconciliation. His March 31st bank statement reads $32,040.02, while his March 31st book balance is 31,591.11.

First, Larry confirms that there are no book or bank errors. Then, he finds all EFT payments (insurance of $522.30 and telecommunications bills totaling $256.19) and receipts (two A/R balances of $500 and $765) on the bank statement and adjusts the book balance accordingly (this is how Larry usually records EFT transactions). He notes that there has been one bank collection ($131.10 in cash) which his customer told him about in advance- Larry had updated his book records at that time, so he leaves that amount off his bank reconciliation. Larry also adds the interest revenue of $1.58 to his book balance and subtracts the bank service charges of $5.25. He confirms there were no bounced cheques.

Larry subtracts all three cheques he wrote to suppliers this month from the bank balance ($897.13, $96.49, and $1,107.97). He also adds to the bank balance four deposits, all from this month ($438.75, $953.79, $601.22, and $130.42). All of these transactions have already been recorded in the books.

Larry finds that his adjusted bank and book balances differ by $11.34. Discuss what might have gone wrong. Also, what journal entries does Larry need to make?