1. Using the following information, prepare a bank reconciliation.
Bank balance: $12,565
Book balance: $13,744
Deposits in transit: $2,509
Outstanding checks: 1,777
Bank charges: $125
Bank incorrectly charged the account $142. The bank will correct the error next month.
Check number 1879 correctly cleared the bank in the amount of $562 but posted in the accounting records as $652. This check was expensed to Utilities Expense.
2. Prepare the journal entry to reconcile the bank statement.
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