show the problem

1. Using the following information, prepare a bank reconciliation.

  • Bank balance: $12,565
  • Book balance: $13,744
  • Deposits in transit: $2,509
  • Outstanding checks: 1,777
  • Bank charges: $125
  • Bank incorrectly charged the account $142. The bank will correct the error next month.
  • Check number 1879 correctly cleared the bank in the amount of $562 but posted in the accounting records as $652. This check was expensed to Utilities Expense.

2. Prepare the journal entry to reconcile the bank statement.