You are the bookkeeper of Holmes Traders. You undertake a bank reconciliation at the end of every month. Holmes Traders received its bank statement for the month ending 31 March 2021. The bank reconciliation at the end of February showed a deposit in transit of $780 and two outstanding cheques (no. 563 for $204 and no. 571 for $420). The adjusted cash balance in the entitys records was $7087 debit at the end of February.

Below are the entitys March bank statement and the entitys book records that indicate the deposits made and cheques written during the month of March:

AU Bank - Bank Statement For the period 01/03/2021 31/03/2021 Holmes Traders, NSW
			Dr	Cr	Balance $
		Balance brought forward			6931	CR
1	March	Deposit		780	7711	CR
3	March	Deposit		708	8419	CR
	March	Cheque # 582	312		8107	CR
6	March	Deposit		408	8515	CR
8	March	# 571	420		8095	CR
9	March	Deposit		504	8599	CR
12	March	Deposit		252	8851	CR
	March	# 584	420		8431	CR
13	March	# 583	1020		7411	CR
15	March	Deposit		972	8383	CR
	March	# 587	888		7495	CR
20	March	Deposit		336	7831	CR
22	March	# 585	816		7015	CR
26	March	Deposit		912	7927	CR
29	March	# 586	756		7171	CR
30	March	# 580	516		6655	CR
31	March	interest		23	6678	CR
31	March	Transaction fees	13		6665	CR

Holmes Traders Book Records
Date		Deposits made	Cheques written
		$	No.	$
March	3	708	# 579	288
	6	408	# 580	516
	9	504	# 581	414
	12	252	# 582	312
	15	972	# 583	1020
	20	336	# 584	420
	26	912	# 585	816
	29	756	# 586	432
		$ 4848	# 587	888
				$ 5106

The cash at bank account balance on 31 March was $6829.

In reviewing cheques, a mistake was discovered: Cheque no. 586, written for insurance expenses of $756, was recorded in the general journal as $432.

Required:

1. As the entity does not use special journals, prepare the necessary general journal entries to bring the cash at bank account up to date as at 31 March 2021. (3 marks)
2. Prepare a bank reconciliation statement for Holmes Traders at 31 March 2021. Please ensure you indicate the balance of each amount with either a debit or credit in the bank reconciliation statement. (6 marks)