Blue Company is unable to reconcile the bank balance at January 31. Blue's reconciliation is as follows. $\begin{array}{lr}
\text { Cash balance per bank } & \$ 5,300 \
\text { Add: NSF check } & 1,490 \
\text { Less: Bank service charge } & 25\\text { Adjusted balance per bank } & \$ 6,765 \
\text { Cash balance per books } & \$ 5,905 \
\text { Less: Deposits in transit } & 950 \
\text { Add: Outstanding checks } & 1,860\\text { Adjusted balance per books }&\$ 6,815
\end{array}$ Instructions
(a) Prepare a correct bank reconciliation.
(b) Journalize the entries required by the reconciliation.

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The Answer of Blue Company is unable to reconcile the bank balance at January 31. Blue's reconciliation is as follows. $\begin{array}{lr}
\text { Cash balance per bank } & \$ 5,300 \
\text { Add: NSF check } & 1,490 \
\text { Less: Bank service charge } & 25\\text { Adjusted balance per bank } & \$ 6,765 \
\text { Cash balance per books } & \$ 5,905 \
\text { Less: Deposits in transit } & 950 \
\text { Add: Outstanding checks } & 1,860\\text { Adjusted balance per books }&\$ 6,815
\end{array}$ Instructions
(a) Prepare a correct bank reconciliation.
(b) Journalize the entries required by the reconciliation.

Blue Company Is Unable to Reconcile the Bank Balance at January