Question

Exercise 8-9

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

Cash balance per bank		$4,060.20
Add: NSF check		440.00
Less: Bank service charge		34.00
Adjusted balance per bank		$4,466.20
Cash balance per books		$4,375.20
Less: Deposits in transit		780.00
Add: Outstanding checks		939.00
Adjusted balance per books		$4,534.20

1. Prepare a correct bank reconciliation for January 31. (list items that increase cash balance first. Round answers to 2 decimal places, e.g. 52.75)

2. Journalize the entries required by the reconciliation. Round answers to 2 decimal Places, e.g. 52.75.)

Answer 1