Question1- Bank reconciliationLO⁶

You accountant have been asked to prepare the bank reconciliation for Ultimate Discs (UD), a store that sells frisbees.

• You login to the online bank statement and note that the bank balance is $66,362 as at March 31. 2017. The amount of cash recorded in the accounting records (the books) is $64,800.
• You go through the online bank statement and notice an electronic fund transfer from a customer for $2,300. This customer had paid on credit.
• UD earned $48 of interest income, but was also charged a $25 service charge as the cash balance dropped below the minimum balance of $70,000 this month.
• The bank notified you that one of the cheques you had deposited had insufficient funds in that customers bank account. The cheque and bank charges are $761.

Required:

1. Prepare a bank reconciliation at March 31, 2017

Ultimate Disc Bank Reconciliation March 31, 2017
Bank Statement Balance	$66,362		Book Balance	$64,800
Adjusted Bank Balance			Adjusted Book Balance

2. Prepare the necessary journal entries.

Date	Description	Debit	Credit