I don't understand how we got the bank ending balance of 875

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$625 Thompson Company's ending cash balance is $950, before adjusting items. The only adjusting items were: $850 . $25 service charge . NSF cheque for $200. . $300 deposit is in transit THE CORRECT ANSWER . outstanding cheques total $450. $875 What was Thompson Company's unadjusted bank balance on the bank statement? $725 YOUR ANSWER I DON'T KNOW YET WHAT YOU NEED TO KNOW Thompson Company's unadjusted bank balance on the bank statement was $875. The first step here is to prepare the actual bank reconciliation to determine what the adjusted balance will be: $725. that is determined, you can work backward to determine the ending balance on the bank statement. CASH BANK Ending Balance $950 Ending Balance $875 Service charge (25) Deposits in 300 Transit NSF (200) Outstanding (450) cheques Adjusted Balance $725 Adjusted Balance $725