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Question - Bank Reconciliation
Xenon, Inc.'s August 31 bank statement had an ending cash balance of $2,567. On August 31, Xenon's general ledger showed a balance of $860. After comparing the general ledger to the bank statement, the following items were noted:
Required:
(a) Prepare a bank reconciliation for Xenon Inc.
(b) Make the required journal entries associated with the bank reconciliation.
(c) Discuss the benefit and drawback of maintaining a checking account at a financial institution rather than paying all bills in cash.
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