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Wildhorse is unable to reconcile the bank balance at January 31. Wildhorse's reconciliation is as follows.
Cash balance per bank$3,860.20
Add: NSF check540.00
Less: Bank service charge31.00
Adjusted balance per bank$4,369.20
Cash balance per books$4,175.20
Less: Deposits in transit680.00
Add: Outstanding checks936.00
Adjusted balance per books$4,431.20
Problem 1: Prepare a correct bank reconciliation.
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