Chapter 8, Problem 11EA

Using the following information, prepare a bank reconciliation.

• Bank balance: $6,988

• Book balance: $6,626

• Deposits in transit: $1,600

• Outstanding checks: $599 and $1,423

• Bank charges: $75

• Bank incorrectly charged the account $75. The bank will correct the error next month.

• Check number 2456 correctly cleared the bank in the amount of $234 but posted in the accounting records as $324. This check was expensed to Utilities Expense.