Working Backward: Bank Reconciliation
Dexter Company's bank reconciliation shows an adjusted cash balance of $3,254.33. The follow- ing items also appear on the reconciliation:
|
NSF check
|
$110.50
|
|
Deposit in transit
|
332.10
|
|
Interest earned
|
65.42
|
|
Outstanding checks
|
560.55
|
|
Bank service charges
|
30.00
|
Required
1. Determine the balance on the bank statement prior to adjustment.
2. Determine the balance on the books prior to adjustment.