PROBLEM No. 4-Bank Reconciliation - 30 points VIADUCT SYSTEMS BANK RECONCILIATION MARCH 31, 2003 Cash Balance According to Bank Statement Cash Balance According to company's records Add: Deposits in transit Add: Credit Memorandum Deduct: Outstanding Checks Deduct: Debit Memorandum +/- Bank's Errors +/- Company's Errors Adjusted Balance Adjusted Balance The cash account for Viaduct Systems at March 31, 2003, indicated a balance of $17,474.35. The bank statement indicated a balance of $23,391.40 on March 31, 2003. Comparing the bank statement and the accompanying canceled checks and memorandums with the records reveals the following reconciling items: a. Checks outstanding totaled $5,010.80. b. A deposit of $3,215.50, representing receipts of March 31, had been made too late to appear on the bank statement. The bank had collected $3,600 on a note left for collection. The face of the note was $3,000. d. A check for $1,050 retumed with the statement had been incorrectly recorded by Viaduct Systems as $1,500. The check was for the payment of an obligation to Bates Co. for the purchase of office supplies on account. i e. A check drawn for $878 had been incorrectly charged by the bank as $788. f. Bank service charges for March amounted to $18.25. Instructions 1. Prepare a bank reconciliation. 2. Joumalize the necessary entries. The accounts have not been closed