$$Company$\text{'}$s January $31,2023,$ bank statement balance is $$$$9$ comma $598$ and shows a service charge of $$$$38,$ interest earned of $$$$18,$ and an NSF cheque for $$$$700.$ Deposits in transit total $$$$2$ comma $400,$ and outstanding cheques are $$$$1$ comma $300.$ The bookkeeper incorrectly recorded $$$$186$ for a cheque of $$$$168$ as an account payable. The$$ company's book balance at January $31,2023,$ was $$$$11$ comma $400.$

a$.$

Prepare the bank reconciliation for Jesper Company for January $31,2023.$ Calculate the adjusted bank balance$$ first, and then calculate the adjusted book balance below it$.$ Show that both adjusted balances agree.

b$.$

Prepare the journal entries needed to update the$$ company's books.

Question content area bottom

Part $1$

a$.$ Prepare the bank reconciliation for Jesper Company for January $31,2023.$ Calculate the adjusted bank balance$$ first, and then calculate the adjusted book balance below it$.$ Show that both adjusted balances agree.

$$Let$\text{'}$s begin with the bank reconciliation. Start with the bank side of the$$ reconciliation, and then complete the books side.

Jesper Company

Bank Reconciliation

January $31,2023$

Part $2$

Bank

Balance, January $31,2023$

Add:

Less:

Adjusted bank balance

Books

Balance, January $31,2023$

Add:

Less:

Adjusted book balance

Part $3$

Show that both adjusted balances agree. Enter the total adjusted bank balance and the adjusted book balance to show if the adjusted balances agree.

Adjusted bank balance

$=$

Adjusted book balance

$=$

Part $4$

b$.$ Prepare the journal entries needed to update the$$ company's books. $($Record debits$$ first, then credits. Select the explanation on the last line of the journal entry$$ table.$)$

Record the correction of the book error.

Journal Entry

Date

Accounts and Explanations

Debit

Credit

Jan.

$31$

Part $5$

Record the $$$$18$ of interest revenue that Jesper Company earned on its bank balance.

Journal Entry

Date

Accounts and Explanations

Debit

Credit

Jan.

$31$

Part $6$

Record the $$$$38$ service charge.

Journal Entry

Date

Accounts and Explanations

Debit

Credit

Jan.

$31$

Part $7$

Record the NSF cheque of $$$$700$ that was returned by the bank.

Journal Entry

Date

Accounts and Explanations

Debit

Credit

Jan.

$31$