Problem: Leng Xiong is unable to reconcile the bank balance as of January 31, Leng's reconciliation is shown here:
Cash Balance per bank = $3,660.20
Add: NSF check = 370.00
Less Bank Service Charge = 25.00
Adjusted Bank Balance per bank = $4,005.20
Cash Balance per books = $3,975.20
Less: Deposits in transits = 590.00
Add: Outstanding checks = 670.00
Adjusted balance per books = $4,055.20
a) What is the proper adjusted cash balance per bank?
b) What is the proper adjusted cash balance per books?
c) Prepare the adjusting journal entries necessary to determine the adjusted cash balance per books?