Solution to this question

P7.6A Prepare bank reconciliation and adjusting entries. (SO 3) The bank portion of last month's bank reconciliation for Yap Ltd. at February 28 was as follows: YAP LTD. Bank Reconciliation February 28 Cash balance per bank $14,368 Add: Deposits in transit 2,530 16 ,898 Less: Outstanding cheques #3451 $2,260 #3470 E 3,795 Adjusted cash balance $13,103 The adjusted cash balance per bank agreed with the 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 14,368 Mar. 1 Cheque, No. 3451 2,260 12,108 1 Deposit 2,530 14,638 2 Cheque, No. 3470 1535 13,103 4 Deposit 1,221 14,324 9 Cheque, No. 3471 1,427 12,897 10 Returned chequeNSF, R. Aubut 550 12,347 10 NSF fee 40 12,307 15 EFI', loan payment 1 ,062 1 1 ,245 19 Cheque, No. 3472 1,641 9,604 26 Deposit 2567 12,171 31 EFI', collection on account from M. Boudteault 230 12,401 31 Bank service charges 49 17-352 31 Debit and credit card fees 65 12,287