The bank portion of last month's bank reconciliation for Yap Ltd. at February 28 was as follows:

The adjusted cash balance per bank agreed with the cash balance per books after the bank reconciliation at February 28. The March bank statement showed the following:

Yap's cash receipts and payments for the month of March showed the following:

Additional information:
1. The EFT loan payment should have been recorded by the company on March 15, but this entry was missed. The payment included $62 of interest and a $1,000 payment on the loan principal.
2. The bank made an error processing cheque #3472.
3. The EFT collection was not previously recorded.
4. Bank service charges ($49) and debit and credit card fees ($65) were not previously recorded.
Instructions
(a) Calculate the unadjusted cash balance per books at March 31, prior to reconciliation.
(b) What is the amount of the deposits in transit at March 31?
(c) What is the amount of the outstanding cheques at March 31?
(d) Prepare the bank reconciliation at March 31.
(e) Prepare any adjusting journal entries required from the reconciliation.

Transcribed Image Text:

YAP LTD. Bank Reconciliation February 28 Cash balance per bank Add: Deposits in transit $14,368 2,530 16,898 Less: Outstanding cheques #3451 #3470 $2,260 1,535 3,795 Adjusted cash balance $13,103 YAP LTD Bank Statement March 31 Amounts Deducted from Account (Debits) Amounts Added to Account (Credits) Date ion Feb. 28 Opening balance Mar. Cheque, No. 3451 2 Cheque, No. 3470 9 Cheque, No. 3471 2,530 1,221 10 Returned cheque NSE R. Aubut 15 Cheque, No. 3472 EFT, collection on account from M. Boudreault Debit and credit card fees 19 2,567 31 31 31 Cash Receipts Cash Payments Num Date Date Mar. 4 26 31 Amount $1,221 2,567 1,025 $4,813 Mar.7 15 29 3471 3472 3473 Amount $1,427 1,461 487 $3,375