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At the end of March, the Elbert Company records showed a cash balance of $7,027. When comparing the March 31 bank statement with the company's cash account, the company discovered that deposits in transit were $725, outstanding checks totaled $862, bank service charges were $28, and NSF checks totaled $175.
Required:
1) Compute the March 31 reconciled cash balance of the Elbert Company.
2) Compute the cash balance listed on the March 31 bank statement.
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