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Sky Company is unable to reconcile the bank balance at January 31. Skys reconciliation is as follows. Cash balance per bank $5,300 Add: NSF check
Sky Company is unable to reconcile the bank balance at January 31. Skys reconciliation is as follows.
Cash balance per bank $5,300
Add: NSF check 1,570
Less: Bank service charge 35
Adjusted balance per bank $6,835
Cash balance per books $5,705
Less: Deposits in transit 750
Add: Outstanding checks 1,950
Adjusted balance per books $6,905
Instructions
(a) Prepare a correct bank reconciliation.
(b) Journalize the entries required by the reconciliation.
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