Bank Reconciliation OBJECTIVE 3 Hula Corp. utilizes J.P. Chase in its banking transactions. For the month of August, 2018, J.P. Chase presented Hula with its bank statement as follows:

Upon receiving the bank statement, Hula's accountants analyzed its cash transactions for possible reconciling items between its cash balance per books and J.P. Chase's cash balance:

The correct amount of cheque 9288 is \(\$ 770\). It was recorded as a cash disbursement of \(\$ 707\) by mistake. The cheque was issued to pay for merchandise purchases. The cheque appeared on the bank statement correctly.
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Prepare a bank reconciliation schedule at August 31, 2018, in proper form.
Brief Exercise

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Balance, August 31, 2018 Service charge for August Interest earned during August NSF cheque from Jeffrey Corp. (deposited by Hula) Note ($11,000) and interest ($425) collected for Hula from a customer $64,900 100 875 450 11.425