BANK RECONCILIATION Valentine Investigations has the following information for its cash account:

Balance, 1/31 $ 5,030 Deposits during February 93,160 Checks written during February 92,270 Valentine’s bank statement for February contained the following information:

Balance per bank, 1/31 $ 6,730 Add: February deposits 90,190

$96,920 Less: Checks paid in February $89,790 Bank service charge 80 Debit memo (electric bill) 630 90,500 Balance per bank, 2/28 $ 6,420 A comparison of company records with the bank statement provided the following data:

At 1/31 At 2/28 Deposits in transit $ 510 $3,480 Outstanding checks 2,210 4,690 Required:

. Prepare a bank reconciliation.

. Prepare adjusting entries for Valentine based on the information developed in the bank reconciliation.

Exercise