E8-9: Don Wyatt is unable to reconcile the bank balance at January 31. Dons reconciliation is as follows:

Cash Balance per bank $3560.20

Add: NSF check 490.00

Less: Bank service charge 25.00

Adjusted balance per bank $ 4025.20

Cash balance per books $3875.20

Less: Deposits in transit 530.00

Add: Outstanding checks 730.00

Adjusted balance per books $4075.20

Instructions:

a) Prepare a correct bank reconciliation.

b) Journalize the entries required by the reconciliation.