a.

) 4-2A (Clearing Prior Month Items)

Dentalworks Inc.’s bank reconciliation dated February 28, 2024 is shown below.
Dentalworks Inc.
Bank Reconciliation
February 28

Ending Balance per bank: $24,500

Add: Deposits in transit 1,800

Deduct: Outstanding cheques

Cheque #2895 $500
Cheque #2897 300

Cheque #2898 1,300

(2,100)
Reconciling Balance $24,200

The company’s cash T-Account for March shows the following information:

Cash
Date Comments Amount Date Comments Amount
March 1 Opening balance 24,200 March 2 Cheque #2899 600
March 6 Deposit 1,500 March 3 Cheque #2900 750
March 11 Deposit 800 March 5 Cheque #2901 885
March 30 Deposit 2,700 March 8 Cheque #2902 2,600
March 31 Deposit 1,250 March 11 Cheque #2903 1,100
March 16 Cheque #2904 50
March 18 Cheque #2905 850
March 21 Cheque #2906 1,900
March 24 Cheque #2907 225
March 30 Cheque #2908 900
March 31 Cheque #2909 1,500
19,090

The following comes from the company’s March 2024 Bank Statement:
Date Description Withdrawals Deposits Balance
March 1 Balance Forward 24,500
March 2 Deposit 1,800 26,300
March 4 Cheque #2899 600 25,700
March 5 Cheque #2898 1,300 24,400
March 6 EFT - Maintenance 105 24,295
March 7 Cheque #2900 750 23,545
March 7 Deposit 1,500 25,045
March 8 Bank Collection 840 25,885
March 10 Cheque #2897 300 25,585
March 11 Cheque #2902 2,600 22,985
 March 13 Cheque #2903 1,100 21,885
March 13 Deposit 800 22,685
March 21 Cheque #2905 850 21,835
March 23 Cheque #2901 858 20,977
March 25 Cheque #2907 225 20,752
March 31 EFT – Rent (April) 1,300 19,452
March 31 Bank plan fee 15 19,437
March 31 Interest 1 19,438

Additional Information:
A – The correct amount of cheque #2901 – a payment of an account payable is $858. The company’s
bookkeeper made an error.
B – The bank collection was a note receivable. The note included principal of $800 and interest of $40. No
previous interest accruals had been made on the note.

Required
a.) Prepare a bank reconciliation dated March 31, 2024.
Record any required adjustments based on your reconciliation.