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P7.9A (LO 4) AP The March bank statement showed the following for Yap Co.: Prepare bank reconciliation and related entries . YAP CO. Bank Statement

P7.9A (LO 4) AP The March bank statement showed the following for Yap Co.:

YAP CO. Bank Statement March 31, 2021
Cheques and Other Debits
Cheques and Other Debits
Date
Number
Amount
Deposits
Amount
Feb. 28
$12,742
Mar. 3
3470
$1,535
$2,530
13,737
4
3471
845
12,892
6
3472
1,427
1,221
12,686
7
3473
275
12,411
10
NSF
595
11,816
11
3475
487
1,745
13,074
14
3477
915
12,159
17
3476
1,828
2,283
12,614
20
1,832
14,446
21
3474
2,330
12,116
26
3478
1,080
2,657
13,693
31
LN
1,125
12,568
31
3480
1,679
10,889
31
SC
Additional information:
The bank statement contained three debit memoranda:
An NSF cheque of $595 that Yap had deposited was returned due to insufficient funds in the maker's bank account. This cheque was originally given to Yap by Mr. Jordan, a customer, in payment of his account. Yap believes it will be able to collect this amount from Mr. Jordan.
A bank loan payment (LN), which included $125 of interest and a $1,000 payment on the principal. (Hint: Use Notes Payable.)
A service charge (SC) of $49 for bank services provided throughout the month.
The bank statement contained one credit memorandum for $23 of interest (IN) earned on the account for the month.
The bank made an error processing cheque #3478. No other errors were made by the bank.
Yap's unadjusted cash balance per its general ledger on March 31 is $8,495. Yap's list of cash receipts and cash payments showed the following for March:
Cash Receipts
Cash Payments
Date
Amount
Date
Cheque No.
Amount
Mar. 5
$ 1,221
Mar. 3
3472
$ 1,427
10
1,745
4
3473
725
14
2,283
6
3474
2,330
20
1,832
7
3475
487
25
2,675
13
3476
1,828
31
1,025
14
3477
915
Total
$10,781
19
3478
1,380
21
3479
159
28
3480
1,679
31
3481
862
31
3482
1,126
Total
$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
$12,742
Add: Deposits in transit
2,530
15,272
Less: Outstanding cheques
#3451
$2,260
#3470
1,535
#3471
845
4,640
Adjusted cash balance per bank
$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 recording 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 reconciliation (see part [b] in the instructions). Describe any other follow-up actions required regarding the other reconciling items in Yap Co.'s bank reconciliation.

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