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 $22,800 Book balance $31,925 Bank statement balance Add: Deposit of March 31 in transit 10,315 $33, 115 Deduct: Outstanding cheques: #14 #22 Adjusted bank balance $861 329 1,190 $31,925 Adjusted book balance $31,925 Cash Explanation PR Acct. No. 101 Balance Debit Credit Date 2020 March April Balance 31 30 30 73,694 CR17 CD13 31,925 105, 619 8,651 96, 968 A list of deposits made and cheques written during April, taken from the Cash Receipts Journal and Cash Dist shown below: Deposits Made April 7 13 18 23 27 30 Total April Cash Receipts $ 711 4,740 6,082 14,327 1,806 46,028 $73,694 Saved 27 30 Total April Cash Receipts 12 1,806 46,028 $73,694 Cheques Written $ 5,361 3,248 968 No. 23 24 25 26 27 28 29 30 31 32 331 4, 517 4,900 20,946 44, 080 440 12, 177 $96, 968 Total April Cash Disbursements The following bank statement is available for April: Bank Statement To: Stewart Recording Studio Cheques/Charges Deposits/Credits #31 04/03 #28 04/07 #26 04/13 NSF 04/18 #24 04/23 #23 04/27 #29 04/30 PMT 04/30 INT 04/30 SC 04/30 NSF = Not Sufficient Funds 440 9.400 331 15, 159 3,248 5,361 20,946 16, 964 786 189 SC = Service Charge 04/03 04/07 04/13 04/18 04/23 04/27 04/30 10, 315 711 4,740 6,082 14,327 1,806 127,000 April 30, 2020 Bank of Canada Balance 22,800 32,675 23,986 28, 395 19, 318 30, 397 26,842 132, 896 115,932 115, 146 114,957 INT = Interest on Bank PMT = Payment of Principal on the loan 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 $15,159 was that of customer Oprah Winney, deposited in March . On the bank statement, the payment for $16,964 is regarding a note payable. There is also a deposit of $127,000 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: Deduct: Deduct: Outstanding cheques: Record to reinstate customer account. Ninte. Friter debite hefore credite