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Working Backward: Bank Reconciliation
Dexter Company's bank reconciliation shows an adjusted cash balance of $3,254.33. The follow- ing items also appear on the reconciliation:
NSF check
$110.50
Deposit in transit
332.10
Interest earned
65.42
Outstanding checks
560.55
Bank service charges
30.00
Required
1. Determine the balance on the bank statement prior to adjustment.
2. Determine the balance on the books prior to adjustment.
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