Prepare Journal Entries for Bank Reconciliation

1. Based on the bank reconciliation, prepare the journal entries. If an amount box does not require an entry, leave it blank.

Lisa Chai Associates
Bank Reconciliation
July 31, 20 - -
Bank statement balance, July 31		$2,764.40
Add deposits in transit	$250.00
	98.00	348.00
		$3,112.40
Deduct outstanding checks:
No. 296	$103.50
No. 299	17.80
No. 301	33.20	154.50
Adjusted bank balance		$2957.90
Book balance, July 31		$3,084.90
Add error on Check No. 291*		23.00
		$3,107.90
Deduct: NSF check	$140.00
Bank service charge	10.00	150.00
Adjusted book balance		$2957.90
*Accounts Payable was debited in original entry.