Reference no: EM133177802

Question - On March 31, Bunny ltd had a cash balance of $19,070 in its general ledger. The bank statement showed a balance of $16,780 at the same date. A comparison of the bank statement and the accounting records revealed the following information:

Bank service charges and debit and credit card processing fees for the month were $65.

A cheque in the amount of $575 from one of Bunny's customers that had been deposited during the last week of March was returned with the bank statement as "NSF".

Cheque #213, which was a payment to a supplier, had been correctly written for $860 but had been incorrectly recorded in the general journal and general ledger as $680.

Bunny ltd had written and mailed out cheques with a total value of $2,650 that had not yet cleared the bank account.

During the month, the bank collected a $2,000 note receivable from a customer plus the related interest of $180 on behalf of Bunny. $100 of the interests had already been accrued by Bunny.

The cash receipts for March 31 amounted to $6,300 and had been deposited in the night deposit chute at the bank on the evening of March 31. These were not reflected on the bank statement.

Required -

a. Preparing the bank reconciliation at March 31.

b. Preparing any journal entries required from the reconciliation.