Lisa Ceja is unable to reconcile the bank balance at January 31. Lisa’s reconciliation Prepare bank reconciliation is as follows. and adjusting entries.

(LO 7)

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 $3,825.20 Less: Deposits in transit 480.00 Add: Outstanding checks 930.00 Adjusted balance per books $4,275.20 Instructions

(a) Prepare a correct bank reconciliation.

(b) Journalize the entries required by the reconciliation.