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A comparison of checks written before and during August with the checks cleared through the bank showed outstanding checks at the end of August of $60,000. No deposits in transit were carried over from July, but a deposit was in transit at the end of August. The company was showing a beginning balance in the cash account on August 1st of $430,500. Deposits were shown as $400,500 with checks written as $410,000.
Problem a. Prepare a bank reconciliation.
Problem b. Provide the journal entries that are required to be entered into the accounting system as a result of this bank reconciliation.
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