March 2016 bank reconciliation, detailed below was incorrectly prepared( Note: the disruptions and the amounts if the listed items are correct) Because the bank reconciliation did not balance. the ledger account balances provided (in the form T-accounts) are shown before journal entries were posted. What is the correct bank reconciliation? ( following the first page)

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Capitol Landing Corporation Bank Reconciliation March 31, 2016 35,780 Cash balance according to company's books Cash balance according to bank statement $ $ 30,830 Add: Add: Check from customer to pay on A/R, returned by customer's bank as NSF 2,498 38,278 Proceeds of note collected by bank Note Principal $ Interest 5,000 180 $ 5,180 Deduct: Deposits in transit on March 31 $ 8,765 Bank service charges 125 5,305 36,135 Deduct: Outstanding checks Error in March 10 deposit. Deposit was for actual cash sales of $3,875. Deposit was recorded correctly by the bank but incorrectly in journal as $8,375 No. 855 864 865 1.236 5,072 350 4,500 13,265 6,658 29,477 Updated cash balance $ 25,013 Updated cash balance $ 5. QUESTIONS How would the financial statements be affected if you did not post the journal entries from the bank reconciliation to the ledger? Understated/Overstated/No Change Amount $ Understated/Overstated/No Change Amount $ Income Statement Total revenue Total expenses Net income Balance Sheet Total assets Total liabilities Total stockholders' equity Capitol Landing Corporation Bank Reconciliation March 31, 2016 Cash balance according to bank statement Add: Cash balance according to books Add: Total additions Total additions Subtotal Subtotal Deduct: Deduct: IM Total deductions Updated cash balance Total deductions Updated cash balance 2. PREPARE NECESSARY JOURNAL ENTRIES (including dates and explanations) Date Post Ref. Debit Credit Capitol Landing Corporation Bank Reconciliation March 31, 2016 35,780 Cash balance according to company's books Cash balance according to bank statement $ $ 30,830 Add: Add: Check from customer to pay on A/R, returned by customer's bank as NSF 2,498 38,278 Proceeds of note collected by bank Note Principal $ Interest 5,000 180 $ 5,180 Deduct: Deposits in transit on March 31 $ 8,765 Bank service charges 125 5,305 36,135 Deduct: Outstanding checks Error in March 10 deposit. Deposit was for actual cash sales of $3,875. Deposit was recorded correctly by the bank but incorrectly in journal as $8,375 No. 855 864 865 1.236 5,072 350 4,500 13,265 6,658 29,477 Updated cash balance $ 25,013 Updated cash balance $ 5. QUESTIONS How would the financial statements be affected if you did not post the journal entries from the bank reconciliation to the ledger? Understated/Overstated/No Change Amount $ Understated/Overstated/No Change Amount $ Income Statement Total revenue Total expenses Net income Balance Sheet Total assets Total liabilities Total stockholders' equity Capitol Landing Corporation Bank Reconciliation March 31, 2016 Cash balance according to bank statement Add: Cash balance according to books Add: Total additions Total additions Subtotal Subtotal Deduct: Deduct: IM Total deductions Updated cash balance Total deductions Updated cash balance 2. PREPARE NECESSARY JOURNAL ENTRIES (including dates and explanations) Date Post Ref. Debit Credit