Problem: Taylor & Co., had a balance per books of $16,190.95. The bank statement indicated a balance of$21,016.30, as of October, 31, 2003. Reconciliation items are:

a.Checks outstanding, $5169.75

b.Deposit on transit totals, $4189.40

c.Bank collected a note for Taylor totaling $4,500, of which $500 is interest

d.A check issued by Taylor to Kaiser & Co. for $2,850 was incorrectly recorded for

$2,580

e.A check drawn for i1375, was incorrectly charged by the bfor $1735

f.Bank service charges for the month were $25

1.Prepare bank reconciliation

2.Journalize the necessary entries