Galaxy Company is unable to reconcile the bank balance at January 31. Galaxys reconciliation is as follows:

Cash balance per bank 10,680

Add: NSF check 2,480

Less: Bank service charge 70

Adjusted balance per bank 13,090

Cash balance per books 11,630

Less: Deposits in transit 1700

Add: Outstanding checks 3,300

Adjusted balance per books 13,230

Required:

(a) Prepare a correct bank reconciliation. (30 points)

(b) Journalize the entries required by the reconciliation. (10 points)