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Assignment ID: FG133136830
Question – The August 31 balance shown on the bank statement is $9,050.
There is a deposit in transit of $1,300 at August 31.
Outstanding checks at August 31 totaled $1,620.
Interest credited to the account during August but not recorded on the company’s books amounted to $68.
A bank charge of $44 for checks was made to the account during August. Although the company was expecting a charge, the amount was not known until the bank statement arrived.
In the process of reviewing the canceled checks, it was determined that a check issued to a supplier in payment of accounts payable of $142 had been recorded as a disbursement of $412.
The August 31 balance in the general ledger Cash account, before reconciliation, is $8,436.
1. Show the reconciling items in a horizontal model that should be prepared to reflect the reconciling items as on August 31.
2. Prepare the adjusting journal entry that should be prepared to reflect the reconciling items.