The bookkeeper at Covington Ltd undertakes a bank reconciliation at the end of every month. On 31 August, the bank reconciliation showed a deposit in transit of $650 and two outstanding cheques (no. 463 for $170 and no. 471 for $350). The adjusted cash balance in the company records was $5906 debit.

The company's September bank statement is shown below.

Company records indicate the following deposits made and cheques written during September:

The cash at bank account balance on 30 September was $5691. In reviewing cheques, a mistake was discovered: cheque no. 486, written for advertising expenses of $630, was recorded in the cash payments journal as $360.
1. Prepare the necessary journal entries to bring the cash at bank account up to date as at 30 September.
2. Prepare a bank reconciliation statement for Covington Ltd at 30 September.

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State Bank Bank statement Covington Ltd Kensington, NSW DR CR Statement period 31/8/2016-30/9/2016 $ 31 Aug. Balance brought forward 5776 CR 1 Sept. Deposit 650 6426 CR 2 Sept. Deposit 590 7016 CR 482 260 6756 CR 5 Sept. Deposit 340 7096 CR 7 Sept. 471 350 6746 CR 8 Sept. Deposit 420 7166 CR 11 Sept. Deposit 210 7376 CR 484 350 7026 CR 12 Sept. 483 850 6176 CR 14 Sept. Deposit 810 6986 CR 487 740 6246 CR 19 Sept. Deposit 280 6526 21 Sept. 485 680 5846 25 Sept. Deposit 760 6606 28 Sept. 486 630 5976 30 Sept. 480 430 5546 5 5 5 5 5 CR CR CR CR CR Interest 18 5564 CR Bank charges 11 5553 CR