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						$9,060
Total deposits and other credits						30,031
Total checks and other debits						24,925
Ending balance 3/31/Year 2						14,166
	Checks and Debits					Deposits and Credits
	Check No.		Amount			Date		Amount
		1462	$	3,787		March	1	$	1,130
		1463		1,673		March	2		6,535
		1464		8,031		March	6		4,964
		1465		2,931		March	12		6,202
		1466		1,438		March	17		5,998
		1467		6,215		March	22		2,117
		DM		50		CM			3,085
		1468		800

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	$	1,673		March	1		$	6,535
March	5		1464		8,031		March	5			4,964
March	6		1465		2,931
March	9		1466		1,438		March	10			6,202
March	10		1467		6,215
March	14		1468		120		March	16			5,998
March	19		1469		1,533		March	19			2,117
March	28		1470		775		March	29			3,580

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 $1,130.

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

7. The unadjusted Cash account balance at March 31 was $13,083.

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.