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Question: Preparing a bank reconciliation Brett Warren Corporation operates four bowling alleys. The business just received the October 31, 2016, bank statement from City National Bank, and the statement shows an ending balance of $900. Listed on the statement are an EFT rent collection of $405, a service charge of $7, NSF checks totaling $45, and a $26 charge for printed checks. In reviewing the cash records, the business identified outstanding checks totaling $460 and a deposit in transit of $1,765. During October, the business recorded a $260 check by debiting Salaries Expense and crediting Cash for $26. The business's Cash account shows an October 31 balance of $2,112.
Requirements: 1. Prepare the bank reconciliation at October 31.
2. Journalize any transactions required from the bank reconciliation.
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