Problem 7-9A Preparing a bank reconciliation and recording adjustments LO6 Stewart Recording Studio, owned by Ron Stewart, showed the following bank reconciliation at March 31: Stewart Recording Studio Bank Reconciliation March 31, 2020 Bank statement balance $ 21,700 Book balance $ 30,385 Add: Deposit of March 31 in transit 9,817 $ 31,517 Deduct: Outstanding cheques: #14 $ 819 #22 313 1,132 Adjusted bank balance $ 30,385 Adjusted book balance $ 30,385 Cash Acct. No. 101 Date Explanation PR Debit Credit Balance 2020 March 31 Balance 30,385 April 30 CR17 71,086 101,471 30 CD13 90,032 11,439 A list of deposits made and cheques written during April, taken from the Cash Receipts Journal and Cash Disbursements Journal, is shown below: Deposits Made April 7 $ 686 13 4,572 18 5,867 23 13,820 27 1,742 30 44,399 Total April Cash Receipts $ 71,086 Cheques Written No. 23 $ 5,169 24 3,133 25 935 26 306 27 4,175 28 4,900 29 19,355 30 40,360 31 408 32 11,291 Total April Cash Disbursements $ 90,032 The following bank statement is available for April: Bank Statement To: Stewart Recording Studio April 30, 2020 Bank of Canada Cheques/Charges Deposits/Credits Balance 21,700 #31 04/03 408 04/03 9,817 31,109 #28 04/07 9,400 04/07 686 22,395 #26 04/13 306 04/13 4,572 26,661 NSF 04/18 14,012 04/18 5,867 18,516 #24 04/23 3,133 04/23 13,820 29,203 #23 04/27 5,169 04/27 1,742 25,776 #29 04/30 19,355 04/30 116,000 122,421 PMT 04/30 15,674 106,747 INT 04/30 416 106,331 SC 04/30 177 106,154 NSF = Not Sufficient Funds SC = Service Charge PMT = Payment of Principal on the loan INT = Interest on Bank Loan In reviewing cheques returned by the bank, the bookkeeper discovered that cheque #28, for delivery expense, was recorded in the Cash Disbursements Journal correctly as $4,900. The NSF cheque for $14,012 was that of customer Oprah Winney, deposited in March. On the bank statement, the payment for $15,674 is regarding a note payable. There is also a deposit of $116,000 dated April 30. It is an investment made by the owner into the business (the bank transferred the funds electronically from the owners personal account to his business account, which is why it was not recorded in the Cash Receipts Journal). Required: a. Prepare a bank reconciliation for Stewart Recording Studio at April 30.