The following information is available for Pyle Garage for March, Year 2:

BANK STATEMENT HAZARD STATE BANK 215 MAIN STREET HAZARD, GA 30321
Pyle Garage 629 Main Street HAZARD, GA 30321						Account number 62-00062 March 31, Year 2
Beginning balance 3/1/Year 2						$9,079
Total deposits and other credits						30,142
Total checks and other debits						25,086
Ending balance 3/31/Year 2						14,135
	Checks and Debits					Deposits and Credits
	Check No.		Amount			Date		Amount
		1462	$	3,803		March	1	$	1,148
		1463		1,691		March	2		6,553
		1464		8,049		March	6		4,985
		1465		2,948		March	12		6,214
		1466		1,454		March	17		6,012
		1467		6,227		March	22		2,133
		DM		64		CM			3,097
		1468		850

The following is a list of checks and deposits recorded on the books of Pyle Garage for March, Year 2:

Date			Check No.	Amount of Check			Date			Amount of Deposit
March	1		1463	$	1,691		March	1		$	6,553
March	5		1464		8,049		March	5			4,985
March	6		1465		2,948
March	9		1466		1,454		March	10			6,214
March	10		1467		6,227
March	14		1468		145		March	16			6,012
March	19		1469		1,545		March	19			2,133
March	28		1470		791		March	29			3,590

Other Information

1. Check no. 1462 was outstanding from February.

2. A credit memo for collection of accounts receivable was included in the bank statement.

3. All checks were paid at the correct amount.

4. The bank statement included a debit memo for service charges.

5. The February 28 bank reconciliation showed a deposit in transit of $1,148.

6. Check no. 1468 was for the purchase of equipment.

7. The unadjusted Cash account balance at March 31 was $13,061.

Required:

1. Prepare the bank reconciliation for Pyle Garage at the end of March.

2. Explain how the adjustments described above affect the cash account.

Prepare the bank reconciliation for Pyle Garage at the end of March. (Negative amo