Chapter 8, Problem 11EB

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 for $412. 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.