MBA560 Financial and Managerial Accounting: The following information is available for Cooters

MBA560 Financial and Managerial Accounting
Problem 4-22 Bank reconciliation and adjustments to the cash account
The following information is available for Cooters Garage for March 2012:
The following is a list of checks and deposits recorded on the books of Cooters Garage for March 2012:
Other Information
1. Check no. 1462 was outstanding from February.
2. A credit memo for collection of accounts receivable was included in the bank statement.
3. All checks were paid at the correct amount.
4. The bank statement included a debit memo for service charges.
5. The February 28 bank reconciliation showed a deposit in transit of $1,000.
6. Check no. 1468 was for the purchase of equipment.
7. The unadjusted Cash account balance at March 31 was $16,868.

Required
a. Prepare the bank reconciliation for Cooters Garage at the end of March.
b. Explain how the adjustments described above affect the cash account.
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