After a ban reconciliation is completed, adjusting entries are prepared for items in the balance per company's records as well as items in the balance per bank statement - True or False and can you please explain why? I've read this questions over & over and the more I read it, the more confused I am. Thanks!

You only do adjusting entries for items on the bank statement that are not in your company's books like collection on notes, interest earned, if a customer makes a deposit into your account directly, a charge that is paid directly from your account, NSF charges, etc...

So then the answer should be false because you don't make adjusting entries for both bank statements AND company's books. Correct?

Correct.

Thank you!