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The bank statement shows a balance of $12,000, while the company's cash book shows a balance of $11,500. There are outstanding checks of $1,800, deposits
The bank statement shows a balance of $12,000, while the company's cash book shows a balance of $11,500. There are outstanding checks of $1,800, deposits in transit of $2,000, a bank service charge of $50, and a customer’s check returned for insufficient funds of $250.
Tasks:
- Prepare the bank reconciliation.
- Adjust the cash book balance.
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