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Problem - Case - Gordon Company is unable to reconcile the bank balance at January 31. Gordon's reconciliation is as follows.
Cash balance per bank 65,340
Add: NSF check 1,240
Less: Bank service charge 35
Adjusted balance per bank 66,545
Cash balance per books 65,815
Less: Deposits in transit 850
Add: Outstanding checks 1.650
Adjusted balance per books 6,615
Required -
(a) Prepare a correct bank reconciliation.
(b) Journalize the entries required by the reconciliation.
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