An Examination of the Accounting Records and the Bank Statement

Essay

An examination of the accounting records and the bank statement of Garrison Business revealed the following:
$$\begin{array} { l l } \text { Balance in Garrison's cash account } & \$ 50000 \\\text { Balance according to the bank } & \$ 45000 \\\text { Outstanding cheques } & \$ 8000 \\\text { Deposits in transit } & \$ 22500 \\\text { Bank fees } & \$ 500 \\\text { Direct deposits to the bank } & \$ 10000\end{array}$$ Prepare a bank reconciliation and identify the items that require adjustments to Garrison's records.