Reference no: EM133136830

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.

Required -

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.