(Preparing a bank reconciliation, LO 1) On March 31, 2006 the accounting records of Nenagh Ltd. (Nenagh) showed a cash balance of $1,925.72. The balance reported in Nenagh’s March 31, 2006 bank statement was $1,530.79. Examination of the bank statement and the accounting records showed the following:

Three cheques that had been written and mailed by Nenagh, and recorded in Nenagh’s accounting records, had not been cashed by the entities to which the cheques had been written. The outstanding cheques were numbers #455 for $195.25, #459 for $88.88, and #461 for $12.55.
Nenagh deposited $875.61 in cash and cheques to its bank account through a bank machine late on March 31, 2006. The deposits were not recorded by the bank until April 2006 and as a result did not appear in the March 31, 2006 bank statement.
The bank collected $225.00 on behalf of Nenagh from one of Nenagh’s customers. Nenagh did not record this collection in its accounting records.
Bank service charges for March 2006 were $21. The amount was deducted from Nenagh’s bank account but not recorded in the accounting records.
A cheque received from one of Nenagh’s customers was not honoured by the bank because the customer did not have enough money in its bank account to cover the cheque. The amount of the cheque was $96.68. Nenagh had recorded the cheque as a debit to cash when it was deposited.
The bank made an error by depositing $56.69 to Nenagh’s bank account that should have been deposited to another account.

Required

a. Prepare a bank reconciliation for March 31, 2006.

b. What amount should Nenagh report for cash on its March 31, 2006 balance sheet?

c. Prepare any journal entries required as a result of the bank reconciliation and the review of the bank statement.