Lisa Cesar is unable to reconcile the bank balance for her catering company on January 31. Lisa’s reconciliation is as follows:
|
Cash balance per bank |
$3,660.20 |
|
Add: NSF check |
590.00 |
|
Less: Bank service charge |
25.00 |
|
Adjusted balance per bank |
$4,225.20 |
|
Cash balance per books |
$3,875.20 |
|
Less: Deposits in transit |
530.00 |
|
Add: Outstanding checks |
930.00 |
|
Adjusted balance per books |
$4,275.20 |
Instructions
(a) Prepare correct bank reconciliation.
(b) Journalize the entries required by the reconciliation.