Don Wyatt is unable to reconcile the bank balance at January 31. Dons reconciliation is as follows.

Cash balance per bank		$4,120.20
Add: NSF check		410.00
Less: Bank service charge		32.00
Adjusted balance per bank		$4,498.20
Cash balance per books		$4,435.20
Less: Deposits in transit		810.00
Add: Outstanding checks		937.00
Adjusted balance per books		$4,562.20

1.) Prepare a correct bank reconciliation. (List items that increase cash balance first.)

2.) Journalize the entries required by the reconciliation.