SLU bi Ay.A Principles accounting 2 assignment 2 Question 1: XYZ Company is closing its book and must prepare bank reconciliation for the following items: Bank statement contains an ending balance of $450,000 on February 28, 2018, whereas the company's ledger shows an ending balance of $400,000 Bank statement contains a $3000 service charge for operating the account Bank statement contains interest income of $5000 XYZ issued checks of $60,000 that have not yet been cleared by the bank (outstanding checks) XYZ deposited $50,000 but this did not appear on the bank statement (deposit in transit) A note receivable of $46,000 was collected by the bank. A check of $8000 deposited by the company has been charged back as NSF. Required: Prepare the bank reconciliation and the journal entries. Solution: Bank reconciliation Amount The journal entries: Date Debit Credit