Problem: Don Wyatt is unable to reconcile the bank balance at January 31. Don's reconciliation is as follows.
Cash balance per bank $3,560.20
Add: NSF cheque 490.00
Less: Bank service charge 25.00
Adjusted balance per bank $4,025.20
Cash $3,875.20
Less: Deposits in transit 530.00
Add: Outstanding cheques 730.00
Adjusted balance per books $4,075.20
Assignment Instructions:
(a) Make correct bank reconciliation.
(b) Make the entries required by the reconciliation.
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