Post the correct journal entries for the bank reconciliation on the next page based on the scenario provided.
The August 2016 bank statement for Lane Enterprises shows an ending balance of $5,250. Before Lane Enterprises received the bank statement, the bank called to inform the company the ending balance would be overstated by $200 due to a computer glitch. On August 31, the company received $270 in cash which they deposited. Also, the company has $920 in outstanding checks.
Lane Enterprises had a cash account balance of $4,875. The company noticed some bank information was not added to its accounting records. On its bank statement, there was a service charge for $260 and an NSF check fee for $150.
The statement also shows $80 was added to the final bank balance as interest. To save time, the company decided to have its checks printed by the bank; so this service was an additional charge of $145.
