Basel AG is unable to reconcile the bank balance at January 31. Basel's reconciliation is as follows.
Cash balance per bank...........................CHF3,660.20
Add: NSF check..........................................590.00
Less: Bank service charge.................................30.00
Adjusted balance per bank......................CHF4,220.20
Cash balance per books..........................CHF3,825.20
Less: Deposits in transit.................................480.00
Add: Outstanding checks...............................935.00
Adjusted balance per books.....................CHF4,280.20
Instructions
(a) Prepare a correct bank reconciliation.
(b) Journalize the entries required by the reconciliation.