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 Account number 629 Main Street 62-00062 HAZARD, GA 30321 March 31, Year 2 Beginning balance 3/1/Year 2 $9,093 Total deposits and other credits 30, 215 Total checks and other debits 25, 201 Ending balance 3/31/Year 14, 107 2 Checks and Debits Deposits and Credits Check No. Amount Date Amount 1462 $3,816 March 1 $1,160 1463 1,701 March 2 6,558 1464 8,059 March 6 5,001 1465 2,956 March 12 6,224 1466 1,464 March 17 6,022 1467 6,242 March 22 2,140 DM 73 CM 3, 110 1468 890 The following is a list of checks and deposits recorded on the books of Pyle Garage for March, Year 2: Amount of Deposit $6,558 5,001 Amount Check of Date No. Check Date March 1 1463 $1,701 March 1 March 5 1464 8,059 March 5 March 6 1465 2,956 March 9 1466 1,464 March 10 March 10 1467 6,242 March 14 1468 165 March 16 March 19 1469 1,557 March 19 March 28 1470 803 March 29 6,224 6,022 2, 140 3,601 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 $1,160. 6. Check no. 1468 was for the purchase of equipment. 7. The unadjusted Cash account balance at March 31 was $13,036. Required: a. Prepare the bank reconciliation for Pyle Garage at the end of March. b. Explain how the adjustments described above affect the cash account. Prepare the bank reconciliation for Pyle Garage at the end of March. (Negative amounts should be indicated with minus sign.) PYLE GARAGE Bank Reconciliation March 31, Year 2 Unadjusted Bank Balance, March 31, Year 2 0 True Cash Balance, March 31, Year 2 $ 0 Unadjusted Book Balance, March 31, Year 2 0 True Cash Balance, March 31, Year 2 $ 0 Explain how the adjustments described above affect the cash account. (Select "Not affected" if there is no affect on the "Cash account".) Item No. Affect on the Cash Account 1. 2. 3. 4. 5. 6