As of June 30, 2012, the bank statement showed an ending balance of \(\$ 13,879.85\). The unadjusted Cash account balance was \(\$ 13,483.75\). The following information is available:

1. Deposit in transit, \(\$ 1,476.30\).

2. Credit memo in bank statement for interest earned in June, \(\$ 35\).

3. Outstanding check, \(\$ 1,843.74\).

4. Debit memo for service charge, \(\$ 6.34\).

Required

a. Determine the true cash balance by preparing a bank reconciliation as of June 30, 2012, using the preceding information.

b. Record in general journal format the adjusting entries necessary to correct the unadjusted book balance.