Great Falls Co.’s bank reconciliation as of February 28 is shown below.Bank balance$37,643Book balance$38,153+ Deposit in transit2,950Note collection+745- Outstanding checks -1,730Check printing -35Adjusted book balance$38,863$38,863The adjusting journal entries that Great Falls must record as a result of the bank reconciliation include:Debit Note Payable $745; credit Cash $745.Debit Cash $745; credit Note Receivable $745.Debit Cash $2,950; credit Sales $2,950.Debit Cash $2,950; credit Accounts Receivable $2,950.Debit Miscellaneous Expense $35; credit Accounts Payable $35.
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