EA 11

Using the following information, prepare a bank reconciliation.

• Bank balance: $6,988
• Book balance: $6,626
• Deposits in transit: $1,600
• Outstanding checks: $599 and $1,423
• Bank charges: $75
• Bank incorrectly charged the account $75. The bank will correct the error next month.
• Check number 2456 correctly cleared the bank in the amount of $234 but posted in the accounting records as $324. This check was expensed to Utilities Expense.

EA 12.

Prepare the journal entry to reconcile the bank statement for the above information