Question

Beginning balance 3/1/2018 $15,000.00

Total deposits and other credits 7,000.00
Total checks and other debits 6,000.00
Ending balance 3/31/2018 16,000.00
Checks and Debits Deposits and Credits
Check No. Amount Date Amount
1462 $ 1,163.00 March 1 $ 1,000.00
1463 62.00 March 2 1,340.00
1464 1,235.00 March 6 210.00
1465 750.00 March 12 1,940.00
1466 1,111.00 March 17 855.00
1467 964.00 March 22 1,480.00
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 $ 1,340.00
March 5 1464 1,235.00 March 5 210.00
March 6 1465 750.00
March 9 1466 1,111.00 March 10 1,940.00
March 10 1467 964.00
March 14 1468 70.00 March 16 855.00
March 19 1469 1,500.00 March 19 1,480.00
March 28 1470 102.00 March 29 2,000.00

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

Answer 1

To prepare the bank reconciliation, compare the book balance with the bank statement, reconcile any differences, and make necessary adjustments.

Step-by-step explanation:

To prepare the bank reconciliation for Pyle Garage at the end of March, we need to compare the company's records (the book balance) with the bank statement (the bank balance) and make adjustments accordingly.

Starting with the book balance of $15,000, we add the total deposits and other credits ($7,000) and subtract the total checks and other debits ($6,000). This gives us an adjusted book balance of $16,000, which matches the ending balance on the bank statement.

Next, we compare the list of checks and deposits recorded by Pyle Garage with what the bank has processed. We reconcile any differences, such as outstanding checks or deposits in transit. Finally, we make any necessary adjustments to the book balance based on the additional information provided in the question.