Janie Johnson is having trouble with the bank reconciliation at January 31. Her reconciliation is as follows:

Cash balance per books .......... $4,015

Less deposits in transit ..........590

Add outstanding checks ..........730

Adjusted balance per books ....... $4,155

Cash balance per bank ......... $3,700

Add NSF check ............. 430

Less bank service charge ........ 25

Adjusted balance per bank ........ $4,105

1. Identify the errors Janie made in the preparation of the bank reconciliation.

2. What is the correct cash balance?

3. Enter adjustments into the accounting equation needed to update the company’s cash balance.