Don Wyatt is unable to reconcile the bank balance at January 31. Don”s reconciliation is as follows.

Cash balance per bank

$3,560.20

Add: NSF check

490.00

Less: Bank service charge

25.00

Adjusted balance per bank

$4,025.20

Cash balance per books

$3,875.20

Less: Deposits in transit

530.00

Add: Outstanding checks

730.00

Adjusted balance per books

$4,075.20

Instructions

(a)Prepare a correct bank reconciliation.

(b)Journalize the entries required by the reconciliation.