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Answer already given, but I dont know how to do that. For example, why deposit in transit should be 32000- 29000? Why outstanding checks should be 29700-27500? What is different between bakn balance and book balance? Please explain each of answer and give me very detail step.

CHICAGO Company has hired you to reconcile its bank statement and cash account. For June, the Cash account showed the following: Cash Account Balance, June 1 Cash receipts Checks written Balance, June 20 $5,600 32,000 (29.700) $7,900 The June bank statement, just received, showed the following: Bank Statement Balance, June 1 Deposits Note collected for depositor (principle $1,000) Checks cashed Bank service charge NSF check (Brad Jolie) Balance, June 30 $5,600 29,000 1,020 (27,500) (50) (150) $7,920 There were neither outstanding checks nor deposits in transit at May 31 Part A. Prepare the June 30 bank reconciliation for CHICAGO Company. (8 points) June 30 Bank Balance S 7,920 June 30 Book Balance $ 7,900 Additions Deposit in transit 3,000 (32,000-29,000) 1,000 20 Additions: Note Receivable Interest collected Deductions: Outstanding checks (2,200) (29,700-27,500) Deductions Bank Service Charge (50) NSF Check, B. Jolie (150) = Correct Bank Balance $ 8,720 = Correct Book Balance S 8,720

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