PART II: APPLICATION Directions: Please answer each of the following questions. Show your work as necessary. 1. The following bank reconciliation contains several errors. Bank Reconciliation July 31, 20-- Bank Statement Balance $ 9,057.00 Add: Note collected by bank 1,200.00 $10,257.00 Deduct: Outstanding checks $596.00 Error in recording Ck. No. 462 (recorded check for $546 rather than $456) 90.00 686.00 Adjusted Bank Statement Balance $ 9,571.00 Ledger Balance of Cash $ 8,366.00 Add: NSF check from customer $ 60.00 Deposit in transit 941.00 1,001.00 $ 9,367.00 Deduct: Bank service and collection charges 14.00 Adjusted Ledger Balance of Cash $ 9,353.00 Instructions: Prepare a corrected bank reconciliation. Bank Reconciliation July 31, 20-- Bank Statement Balance Add: Deposit in transit Deduct: Outstanding checks Adjusted Bank Statement Balance Ledger Balance of Cash Add: Note collected from customer Deduct: Bank service and collection charges Error in recording Ck. No. 462 (recorded check for $546 rather than $456) NSF check from customer Adjusted Ledger Balance of Cash 2. Capable Cleaners deposits all receipts in the bank each evening and makes all payments by check. On March 31 its ledger balance of cash is $983.40. The bank statement balance of cash as of March 31 is $1,176.53. You are given the following information with which to reconcile the bank statement: a. A bank debit memo for service charges, $5. b. A deposit of $198.50 was placed in the night depository on March 31 and did not appear on the bank statement. c. The reconciliation for February, the previous month, showed two checks outstanding on February 28: Ck. No. 332 for $18 and Ck. No. 333 for $138.60. Ck. No. 333 was returned with the March statement; however, Ck. No. 332 was not returned. d. A bank debit memo for a $4.17 NSF check written by L. Long. e. Checks no. 352 for $141.15, no. 355 for $17.50, and no. 356 for $215.15 were written during March but were not returned by the bank. f. The canceled checks were compared with the entries in the check register, and it was observed that Ck. No. 348 for $56 was written correctly, payable to Glyn Company, a creditor, but was recorded in the checkbook as $65. Instructions: 1. Prepare a bank reconciliation as of March 31, assuming that the debit and credit memos have not been recorded. 2. Record the necessary entries in general journal form using page 41. 1.) Capable Cleaners Bank Reconciliation March 31, 20— Bank Statement Balance Add: Deposit in transit Deduct: Outstanding checks No. 332 No. 352 No. 355 No. 356 Adjusted Bank Statement Balance Ledger Balance of Cash Add: Error in recording Ck. No. 348 payable to Glyn Company (recorded check for $9 too much) Deduct: Bank servic.