problem 8-3 (IAA) Kanthous Company provided the following bank reconciliation January 31 of the current year: Bank balance Add Deposit in transit 300,000 600,000 900,000 educt Outstanding checks: No. 114 115 116 240,000 160,000 60,000 460,000 440,000 Adjusted bank balance All receipts of cash are deposited in the bank account. The bank statement for the month of February is presented below THIRD BANK Deposit Date Checks 300,000 660,000 2,660,000 2,460,000 1,960,000 1,800,000 2,800,000 2,300,000 3,500,000 4,800,000 4,250,000 4,245,000 3,795,000 3,265,000 Balance forwarded an. 31 Feb. 1 240,000 200,000 160,000 500,000 550,000 600,000 2,000,000 400,000 1,000,000 1,200,000 10 13 16 21 23 24 27 28 1,300,000 5,000 SC 1,000,000 550,000 270,000 CM 800,000 The following information was taken from the credit memo of February 28: Face of the note 250,000 30,000 280,000 10,000 270,000 lnterest on the note Maturity value of the note Collection charge to your account 247 Thefollowing data were taken from the Xanthous Company: cash journals of Cash Disbursement Journal Cash Receipt Journal Date Feb. 2 Credit Cash Check No. Debit Cash 200,000 900,000 800,000 500,000 550,000 180,000 1,000,000 120,000 250,000 2,000,000 400,000 800,000 200,000 1,200,000 1,300,000 550,000 450,000 118 119 120 121 122 123 124 125 10 15 20 24 28 4,500,000 6,900,000 Required: a. Prepare bank reconciliation on February 28, showing the book balances before and after adjustment. b. Prepare journal entries to record the adjustments that are indicated by the bank reconciliation