Requirement 1. Prepare the

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Automotive bank reconciliation at

MarchMarch

3131?,

20162016.

Prepare the Bank side of the bank? reconciliation, then prepare the Book side of the bank reconciliation. ?(Include the balances at

MarchMarch

3131

in each of the addition subtotal calculations. If a box is not used in the? table, leave the box? empty; do not select a label or enter a? zero.)

Dunlap Automotive
Bank Reconciliation
March 31, 2016
Bank:
	Add:
	Subtotal
	Less:
			Check No.
Books:
	Add:
	Subtotal
	Less:

Requirement 2. Prepare the journal entries required at

MarchMarch

3131?,

20162016.

?(Record debits? first, then credits. Exclude explanations from all journal? entries.)

Record the EFT deposit.

Journal Entry
Date		Accounts	Debit	Credit
Mar	31

Record the bank collection of note receivable.

Journal Entry
Date		Accounts	Debit	Credit
Mar	31

Record the correction for check? #3115.

Journal Entry
Date		Accounts	Debit	Credit
Mar	31

Record the EFT debit.

Journal Entry
Date		Accounts	Debit	Credit
Mar	31

Record the unauthorized signature? (US) check returned by the bank.

Journal Entry
Date		Accounts	Debit	Credit
Mar	31

?Finally, record the bank service charge.

Journal Entry
Date		Accounts	Debit	Credit
Mar	31

Requirement 3. Describe how a bank account and the bank reconciliation help the general manager control

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?Automotive's cash.

A bank account helps control cash? by: ?(Select all statements that apply. If a box is not used in the? table, leave the box? empty; do not select a? label.)

A bank reconciliation helps control cash? by: ?(Select all statements that apply. If a box is not used in the? table, leave the box? empty; do not select a? label.)

Check book
Cash								Account No. 101
Date	Item			Jrnl. Ref.		Debit		Credit		Balance
March 1	Balance									7,050
31				CR 6		9,822				16,872
31				CP 11				9,611		7,261
Cash Receipts (CR)					Cash Payments (CP)
Date		Cash Debit			Check No.		Cash Credit
March 2		$2,827			3113		$1,500
8		585			3114		1,257
10		1,696			3115		1,830
16		895			3116		33
22		417			3117		814
29		920			3118		141
30		2,482			3119		545
Total		$9,822			3120		1,041
					3121		166
					3122		2,284
					Total		$9,611

Bank Statement for March 2016
Beginning balance							$7,050
Deposits and other additions:
	March	1		$775		EFT
		4		2,827
		9		585
		12		1,696
		17		895
		22		417
		23		1,450		BC	8,645
Checks and other deductions:
	March	7		$1,500
		13		1,380
		14		500		US
		15		1,257
		18		33
		21		336		EFT
		26		814
		30		141
		30		15		SC	(5,976)
Ending balance							$9,719
?Explanation: BCminus?bank collection of note receivable from? customer, EFTminus?electronic funds? transfer, USminus?unauthorized ?signature, SCminus?service charge

Additional data for the bank reconciliation

a.	The EFT deposit was a receipt of monthly rent. The EFT debit was a monthly insurance payment.
b.	The unauthorized signature check was received from a customer and returned by the bank unpaid.
c.	The correct amount of check number? 3115, a payment on? account, is $ 1 comma 380$1,380. ?(DunlapDunlap ?Automotive's accountant mistakenly recorded the check as $ 1 comma 830$1,830?.)