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

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

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 $1,000.

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

7. The unadjusted Cash account balance at March 31 was $16,868.

Required

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

b. Explain how the adjustments described affect the cash account.

Transcribed Image Text:

BANK STATEMENT HAZARD STATE BANK 215 MAIN STREET HAZARD, GA 30321 Pyle Garage 629 Main Stroet Account number 62-00062 Hazard GA 30321 March. Year 2 $15000.00 Beginning balance 31/Year 2 Total deposits and other credits 7000.00 6000.00 16,000.00 Total checks and other debits Ending balance 3/31/Year 2 Checks and Debits Check No. Deposits and Credits Amount Date Amount 1462 1463 1464 1465 s1163.00 62.00 1,235.00 March $1000.00 1340.00 March 2 March 6 210.00 750.00 March 12 1940.00 855.00 1480.00 175.00 1466 1,11.00 964.00 15.00 March 17 1467 March 22 DM CM 1468 00004