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

The reconciled cash balance per bank agreed with the reconciled 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 $84 of interest and a $1,130 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 and credit card fees totalling $89 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 journal entries required from the reconciliation.

Transcribed Image Text:

YAP LTD Bank Reconciliation February 28 Cash balance per bank $17,984 Add: Deposits in transit 3,140 21,124 Less: Outstanding cheques #3451 #3470 1,960 2,135 $17,029 Reconciled cash balance YAP LTI Bank Statement March 31 Date Description Amounts Deducted from Account (Debits) Amounts Added to Account (Credits) Balance Feb. 28 Opening balance Mar. 1 Cheque, No. 3451 17,984 16,024 3,140 19,164 17,029 1,971 19,000 17,318 16,448 1,960 1 Deposit 2 Cheque, No. 3470o 4 Deposit 9 Cheque, No. 347:1 10 Returned cheque-NSF, 2,135 1,682 870 J. Mustafa 10 NSF fee 15 EFT, loan payment 19 Cheque, No. 3472 26 Deposit 31 EFT, collection on 16,413 15,199 13,376 3,266 16,642 610 17,252 35 1,214 1,823 account from M Boudreault 31 Bank service charges and 89 17,163 credit card fees Cash Receipts Date Amount Mar.4$1,971 26 3,266 31 4,012 $9,249 Cash Payments Date Number Amount Mar. 73471 $1,682 15 3472 1,283 29 3473 4,947 $7,912