After a bank reconciliation is completed, journal entries are prepared for items in the balance per company's records as well as items in the balance per bank statement.

Question

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Journal entries are only prepared for items in the balance per company's records to adjust the company's books to the reconciled balance. Items on the bank statement side are typically already reflected in the bank's records and do not require journal entries in the company's books.

After a Bank Reconciliation Is Completed, Journal Entries Are Prepared