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Question - 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 check 540.00
Less: Bank service charge 31.00
Adjusted balance per bank $4,369.20
Cash balance per books $4,175.20
Less: Deposits in transit 680.00
Add: Outstanding checks 936.00
Adjusted balance per books $4,431.20
Required -
1. Prepare a correct bank reconciliation.
2. Journalize the entries required by the reconciliation.
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