Alana Davis is unable to reconcile the bank balance at January 31. Alana’s reconciliation is shown here:

Instructions

(a) Prepare a correct bank reconciliation.

(b) Journalize the entries required by the reconciliation.

Transcribed Image Text:

Cash balance per bank Add: NSF check Less: Bank service charge $3,660.20 430.00 25.00 Adjusted balance per bank $4,065.20 Cash balance per books $3,975.20 Less: Deposits in transit 590.00 Add: Outstanding checks 730.00 Adjusted balance per books $4,115.20