E8.9 (LO 3) Don Wyatt is unable to reconcile the bank balance at January 31. Don's reconciliation is as follows. Prepare bank reconciliation and adjusting entries. Cash balance per bank Add: NSF check $3,560.20 490.00 Less: Bank service charge 25.00 Adjusted balance per bank $4,025.20 Cash balance per books $3,875.20 530.00 Less: Deposits in transit Add: Outstanding checks Adjusted balance per books $4,075.20 730.00 Instructions a. Prepare a correct bank reconciliation. b. Journalize the entries required by the reconciliation.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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QUESTION 4
E8.9
E8.9 (LO 3) Don Wyatt is unable to reconcile the bank balance at January 31. Don's
reconciliation is as follows.
Prepare bank reconciliation and adjusting entries.
Cash balance per bank
$3,560.20
Add: NSF check
490.00
Less: Bank service charge 25.00
Adjusted balance per bank $4,025.20
$3,875.20
Cash balance per books
Less: Deposits in transit
Add: Outstanding checks
530.00
730.00
Adjusted balance per books $4,075.20
Instructions
a. Prepare a correct bank reconciliation.
b. Journalize the entries required by the reconciliation.
Transcribed Image Text:QUESTION 4 E8.9 E8.9 (LO 3) Don Wyatt is unable to reconcile the bank balance at January 31. Don's reconciliation is as follows. Prepare bank reconciliation and adjusting entries. Cash balance per bank $3,560.20 Add: NSF check 490.00 Less: Bank service charge 25.00 Adjusted balance per bank $4,025.20 $3,875.20 Cash balance per books Less: Deposits in transit Add: Outstanding checks 530.00 730.00 Adjusted balance per books $4,075.20 Instructions a. Prepare a correct bank reconciliation. b. Journalize the entries required by the reconciliation.
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