QUESTION 7: (Please show work): P7-7A The bank portion of last months bank reconciliation for Yap Ltd. at February 28 was as follows:

YAP LTD. Bank Reconciliation February 28
Cash balance per bank	$17,984
Add: Deposits in transit	3,140
	21,124
Less: Outstanding cheques
#3451	1,960
#3470	2,135
Reconciled cash balance	$17,029

The reconciled cash balance per bank agreed with the reconciled cash balance per books after the bank reconciliation at February 28. The March bank statement showed the following:

YAP LTD. Bank Statement March 31
Date		Description	Amounts Deducted from Account (Debits)	Amounts Added to Account (Credits)	Balance
Feb.	28	Opening balance			17,984
Mar.	1	Cheque, No. 3451	1,960		16,024
	1	Deposit		3,140	19,164
	2	Cheque, No. 3470	2,135		17,029
	4	Deposit		1,971	19,000
	9	Cheque, No. 3471	1,682		17,318
	10	Returned chequeNSF, J. Mustafa	870		16,448
	10	NSF fee	35		16,413
	15	EFT, loan payment	1,214		15,199
	19	Cheque, No. 3472	1,823		13,376
	26	Deposit		3,266	16,642
	31	EFT, collection on account from M. Boudreault		610	17,252
	31	Bank service charges and credit card fees	89		17,163

Yaps cash receipts and payments for the month of March showed the following:

Cash Receipts
Date_		Amount
Mar.	4	$1,971
	26	3,266
	31	4,012
		$9,249

Cash Payments
Date__		Number	Amount
Mar.	7	3471	$1,682
	15	3472	1,283
	29	3473	4,947
			$7,912

Additional information:

1. The EFT loan payment should have been recorded by the company on March 15, but this entry was missed. The payment included $84 of interest and a $1,130 payment on the loan principal.
2. The bank made an error processing cheque #3472.
3. The EFT collection was not previously recorded.
4. Bank service charges and credit card fees totalling $89 were not previously recorded.

Instructions

(a) Calculate the cash balance per books at March 31, prior to reconciliation.

(b) What is the amount of the deposits in transit at March 31?

(c) What is the amount of the outstanding cheques at March 31?

(d) Prepare the bank reconciliation at March 31.

(e) Prepare any journal entries required from the reconciliation.