Problem 7-9A Preparing a bank reconciliation and recording adjustments LO6 Book Print 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 $22,480 Book balance $31,365 Add: Deposit of March 31 in transit 10,135 $32,535 Deduct: Outstanding cheques: #14 $849 #22 321 1.170 Adjusted bank balance $31,365 Adjusted book balance $31, 365 erences Cash Explanation Debit Acct. No. 101 Balance Credit Date 2020 March April Balance 31 30 30 72,406 CR17 CD13 31,365 103,771 10,115 93,656 Check my work CD13 93,656 10.115 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 13 18 23 27 3e Total April Cash Receipts $ 699 4,660 5.978 14,083 1.774 45,212 $72,406 Cheques written No 23 24 25 26 27 28 29 30 31 32 Total April Cash Disbursements $ 5,269 3,192 952 319 4,353 4,900 20,194 42,320 424 593,656 Check my wa The following bank statement is available for April: Bank Statement Deposits/Credits 424 9,400 04/03 04/07 310 To: Stewart Recording Studio Cheques/Charges 331 04/03 28 04/07 #26 04/13 NSF 04/18 #24 04/23 04/27 229 04/30 PHT 04/30 INT 04/30 SC 04/30 NSF - Not Sufficient Funds nces 10,135 699 4,660 5,978 14,083 1,774 123,000 04/18 04/23 04/27 04/30 23 April 30, 2020 Bank of Canada Balance 22,480 32,111 23,410 27.751 19.118 30,000 26,514 129,320 112,964 112,370 212,189 TNT - Interest on Bank Loan 14,611 3,192 5,269 20,194 16,356 594 181 SC - Service Charge PHT - Payment of Principal on the 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 $14,611 was that of customer Oprah Winney, deposited in March . 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 $14,611 was that of customer Oprah Winney, deposited in March. . On the bank statement, the payment for S16,356 is regarding a note payable. . There is also a deposit of $123.000 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. Prepare a bank reconciliation for Stewart Recording Studio at April 30. STEWART RECORDING STUDIO Bank Reconciliation April 30, 2020 Bank Statement Company's Books Bank statement balance Add: Book balance Add
