An Examination of the Accounting Records and the Bank Statement

Essay

An examination of the accounting records and the bank statement of Johnson Business revealed the following:
$\begin{array}{lr}\text { Balance in Johnson's cash account } & \$ 25000 \\\text { Balance according to the bank } & \$ 30000 \\\text { Outstanding cheques } & \$ 7600 \\\text { Deposits in transit } & \$ 17500 \\\text { Bank fees } & 100 \\\text { Direct deposits to the bank } & \$ 15000\end{array}$
Prepare a bank reconciliation, and identify the items that require adjustments to Johnson's records.