Description
1. Using the following information, prepare a bank reconciliation.
- Bank balance: $12,565
- Book balance: $13,744
- Deposits in transit: $2,509
- Outstanding checks: 1,777
- Bank charges: $125
- Bank incorrectly charged the account $142. The bank will correct the error next month.
- Check number 1879 correctly cleared the bank in the amount of $562 but posted in the accounting records as $652. This check was expensed to Utilities Expense.
2. Prepare the journal entry to reconcile the bank statement.
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