Question - Using the following information prepare a bank reconciliation for ABC Company on January 31, 2014 and any required adjusting entries.
The bank service charge for January was $25.
The bank collected a note receivable plus $90 interest for a total of $3,990.
Interest earned on the bank account and not recorded was $45.
Book balance at January 31, 2003 was $20,330.
Deposits in transit totaled $4,000.
Outstanding checks were $4,500.
A check for $400 to a creditor on account that cleared the bank in January was journalized and posted for $420.
A salary check to an employee for $275 was recorded by the bank for $285.
The bank statement showed a balance $24,850.