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Brown's Grocery Store developed the following information in recording its bank statement for the month of March 2022. Balance per books March 31 $ 7,555 Balance per bank statement March 31 $12,760 Additional information:
1. Cheques written in March but still outstanding $10,600.2. Deposits of March 30 and 31 not yet recorded by bank $5,240.3. NSF cheque of customer returned by bank $645.4. Bank service charge for March was $50.5. A payment on account was incorrectly entered in the general journal for $714 when Cheque No. 318 was correctly prepared for $174. The cheque cleared the bank in March. Required:
Problem a) Prepare a bank reconciliation at March 31, 2022.
Problem b) Prepare any adjusting entries necessary as a result of the bank reconciliation.
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