Chapter 7-Bank Reconciliation The cash account for Axel Co. on January 31 indicated a balance of $30,200. The January bank statement indicated an ending balance of $35,200. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items a. Checks outstanding totaled $7,800. b. A deposit of $4,250 had been made too late to appear on the bank statement. c. The bank collected $3,210 on a note receivable, of which $210 was interest revenue. d. Bank service charges for January amounted to $60 A check for $620 was returned by the bank due to insufficient funds. A check drawn for $710 had been erroneously charged by the bank as $170. A check for $1,800 returned with the statement had been incorrectly recorded by the company as $180. The check was originally issued to pay on account. RI: Prepare a bank reconciliation as of January 31. (Use the spreadsheet on the next page.) R2: Jounalize the necessary entries Journal entries: Account Debit Credit Record the additions to the book section: 530 200 Cash 30,200 Record the deductions to the book section: 1800-180 Cash Bank Section: Cash Balance according to bank statement Add Azs Deduct: SAO 50-110 $31,110 Adjusted Bank Balance Book Section: Cash Balance according to company Add Deduct: Adjusted Book Balance $31,110