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.