Problem 7-5A Preparation of bank reconciliation and recording adjustments LO6 CHECK FIGURE: Adjusted book balance = $2,401.54 The bank reconciliation prepared by Gatz Company on May 31, 2020, appeared as follows: Gatz Company Bank Reconciliation May 31, 2020 Bank statement balance ................. Add: Deposit of May 31, in transit...... Deduct: Outstanding cheques: #876 ............................................ $ 655.99 Adjusted bank balance.................... #882 ............................................ 1,800.00 2,455.99 $ 8,090.53 $ 9,564.35 982.17 $10,546.52 Deduct: NSF cheque plus service charge ...................................... $11,900.50 Bank service charge ................. Adjusted book balance ................ 65.00 11,965.50 $ 8,090.53 Book balance .................................. $20,056.03 The Cash account in the general ledger appeared as follows on June 30 (Gatz uses only a general journal to record transactions):