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

REQUIRED:
1. Prepare a bank reconciliation.
2. Prepare adjusting entries for Valentine based on the information developed in the bank reconciliation.

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Balance, 1/31 Deposits during February Checks written during February $ 5,030 93,160 92,270 Valentine's bank statement for February contained the following information: Balance per bank, 1/31 Add: February deposits Less: Checks paid in February Balance per bank, 2/28 Bank service charge Debit memo (electric bill) $ 6,730 90,190 96,920 $89,790 80 630 90,500 $ 6,420 A comparison of company records with the bank statement provided the following data: AT 1/31 AT 2/28 Deposits in transit Outstanding checks $ 510 2,210 $3,480 4,690