Bummer Company?s bank statement from Fifth National Bank at August 31, 2010, shows the information

A summary of the Cash account in the ledger for August shows: Balance, August 1, $10,959; receipts $50,050; disbursements $47,794; and balance, August 31, $13,215. Analysis reveals that the only reconciling items on the July 31 bank reconciliation were a deposit in transit for $2,600 and outstanding checks of $2,925. The deposit in transit was the first deposit recorded by the bank in August. In addition, you determine that there were two errors involving company checks drawn in August:(1) A check for $340 to a creditor on account that cleared the bank in August was journalized and posted for $430. (2) A salary check to an employee for $275 was recorded by the bank for $277.Instructions(a) Prepare a bank reconciliation at August 31.(b) Journalize the adjusting entries to be made by Bummer Company at August 31.Assume that interest on the note has not been accrued by thecompany.

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Bank credit memoranda: Collection of note receivable plus $105 interest Interest earned Bank debit memorandum: Safety deposit box rent Balance. August 1 August deposits Checks cleared in August Balance, August 31 $11.284 47.521 46.475 16.856 $4.505 41