Use the information for Jaguar Corporation in BE7-25. Prepare any entries that are necessary to make Jaguar's accounting records correct and complete.
In BE7-25.
Jaguar Corporation is preparing a bank reconciliation and has identified the following potential reconciling items. For each item, indicate if it is
(a) Added to the balance per bank statement,
(b) Deducted from the balance per bank statement,
(c) Added to the balance per books,
(d) Deducted from the balance per books, or
(e) Not needed for the reconciliation.
1. Deposit in transit of $5,500
2. Previous month\; outstanding cheque for $298 cleared the bank in the current month
3. Interest credited to Jaguar's account of $31
4. Bank service charges of $20
5. Outstanding deposit from previous month of $876 shown by bank as deposit of current month.
6. Outstanding cheques of $7,422
7. NSF cheque returned of $260, and related service charge of $20