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 StudioBank ReconciliationMarch 31, 2020Bank statement balance$21,900Book balance$30,665Add:Deposit of March 31 in transit9,907$31,807Deduct:Outstanding cheques:#14$825#223171,142Adjusted bank balance$30,665Adjusted book balance$30,665

CashAcct. No. 101DateExplanationPRDebitCreditBalance2020March31Balance30,665April30CR1771,320101,98530CD1390,57811,407

A list of deposits made and cheques written during April, taken from the Cash Receipts Journal and Cash Disbursements Journal, is shown below:

Deposits MadeApril7$688134,586185,8852313,862271,7483044,551Total April Cash Receipts$71,320

Cheques WrittenNo.23$5,187243,1432593726308274,203284,9002919,4833040,660314103211,347Total April Cash Disbursements$90,578

The following bank statement is available for April:

Bank StatementTo: Stewart Recording StudioApril 30, 2020

Bank of CanadaCheques/ChargesDeposits/CreditsBalance21,900#3104/0341004/039,90731,397#2804/079,40004/0768822,685#2604/1330804/134,58626,963NSF04/1814,10404/185,88518,744#2404/233,14304/2313,86229,463#2304/275,18704/271,74826,024#2904/3019,48304/30118,000124,541PMT04/3015,778108,763INT04/30432108,331SC04/30177108,154NSF = Not Sufficient

FundsSC = Service

ChargePMT = Payment of

Principal on

the loanINT = 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 $14,104 was that of customer Oprah Winney, deposited in March.
• On the bank statement, the payment for $15,778 is regarding a note payable.
• There is also a deposit of $118,000 dated April 30. It is an investment made by the owner into the business (the bank transferred the funds electronically from the owner's personal account to his business account, which is why it was not recorded in the Cash Receipts Journal).

Required:

a.Prepar a bank reconciliation for Stewart Recording Studio at April 30.