P7.9A (LO 4) AP The March bank statement showed the following for Yap Co.: Prepa relate YAP CO. Bank Statement March 31, 2021 Cheques and Other Debits Number Amount Date Deposits Feb. 28 Mar. 3 $2,530 6 1,221 3470 3471 3472 3473 NSF 3475 3477 3476 $1,535 345 1,427 275 599 487 915 1,745 Amount $12,742 13,737 12,892 12,686 12,411 11,816 13,074 12,159 12,614 14,446 12,116 13,693 12,568 10,889 10,863 1,828 7 10 11 14 17 20 21 26 31 31 31 2,283 1,832 2,657 3474 3478 LN 3480 SC 2,330 1,080 1,125 1,679 49 IN 23 7.46 CHAPTER 7 Internal Control and Cash Aional informatie 1. The bank statement contained three debit memoranda An Scheque of sses that Yap had deposited was returned due to insufficient funds in the maker's bank account. This cheque was originally given to Yup by Mr. Jondancut- somer, in payment of his account, vop becerile de calleet this amount from - A bank loan payment (LN), which included $125 of interest and a $1.000 payment on the prin cipal. (Hint: Use Notes Paryse) - A service charge (SC) of 549 for bank services provided throughout the month. 2. The bank statement contained one credit memorandum for $23 of interest (I)eamed on the account for the month 3. The bank made an error processing cheque #3478. No other errors were made by the bank Yapsunadjusted cash balance per is general ledger on March 31 is $8,495. Yap's list of cash receipts and cash payments showed the following for March Cash Receipts Date Amount Mar. 5 $ 1.221 10 1.745 14 2,283 20 1,832 25 2.675 31 1,025 Total $10,781 Cash Payments Cheque No. 3472 3473 3474 3475 3476 Amount $ 1,427 725 2,330 487 Date Mar. 3 4 6 7 13 14 19 21 28 31 31 Total 915 1.30 3478 3479 3480 3481 1,679 1,126 $12,918 The bank portion of the previous month's bank reconciliation for Yap Co. at February 28, 2021, was as follows: YAP CO. Bank Reconciliation February 28, 2021 Cash balance per bank Add: Deposits in transit $12.742 2,530 15,272 Less: Outstanding cheques N3451 #3470 #3471 Adjusted cash balance per bank $2,260 1.535 845 4,640 $10,632 Instructions a. Prepare a bank reconciliation at March 31. b. Prepare the necessary adjusting entries at March 31. (Note: The correction of any errors in the re- cording of cheques should be made to Accounts Payable. The correction of any errors in the record ing of cash receipts should be made to Accounts Receivable.) Taking It Further The company will prepare entries to record items found in the above bank reconcili ation (see part [b] in the instructions). Describe any other follow-up actions required regarding the other reconciling items in Yap Co.'s bank reconciliation
