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Problem 4-22 Bank reconciliation and adjustments to the cash account

CHECK FIGURE

True Cash Balance, March 31, 2018: $16,398

The following information is available for Pyle Garage for March 2018:

Pyle Garage, Account number 62-00062

Beginning balance 3/1/2018	$15000.00
Total deposits and other credits	7000.00
total checks and other debits	6000.00
Ending balance 3/31/2018	16000.00

Checks and Debits Deposits and Credits

Check No.	Amount	Date	Amount
1462	$1163.00	March 1	$1000.00
1463	62.00	March 2	1340.00
1464	1235.00	March 6	210.00
1465	750.00	March 12	1940.00
1466	1111.00	March 17	855.00
1467	964.00	March 22	1480.00
DM	15.00	CM	175.00
1468	700.00

The following is a list of checks and deposits recorded on the books of Pyle Garage for March 2018:

Date	Check No.	Amount of Check	Date	Amount of Deposit
March 1	1463	$62.00	March 1	$1340.00
March 5	1464	1235.00	March 5	210.00
March 6	1465	750.00
March 9	1466	1111.00	March 10	1940.00
March 10	1467	964.00
March 14	1468	70.00	March 16	855.00
March 19	1469	1500.00	March 19	1480.00
March 28	1470	102.00	March 29	2000.00

Page 158

Other Information

Check no. 1462 was outstanding from February.

A credit memo for collection of accounts receivable was included in the bank statement.

All checks were paid at the correct amount.

The bank statement included a debit memo for service charges.

The February 28 bank reconciliation showed a deposit in transit of $1,000.

Check no. 1468 was for the purchase of equipment.

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

Required

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

Explain how the adjustments described above affect the cash account.

PROBLEM 4-22

a.

Pyle Garage Bank Reconciliation March 31, 2018
Unadjusted Bank Balance, March 31, 2018		$
Add:
Less:	$
True Cash Balance, March 31, 2018		$
Unadjusted Book Balance, March 31, 2018		$
Add:
Less:	$
True Cash Balance, March 31, 2018		$

b.

Item No.	Affect on the cash account:
1.
2.
3.
4.
5.
6.

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