The bank reconciliation made by Thurman, Inc., on August 31 showed a deposit in transit of \(\$ 1,170\) and two outstanding checks, No. 597 for \(\$ 650\) and No. 603 for \(\$ 710\). The reconciled cash balance on August 31 was \(\$ 14,110\).

The following bank statement is available for September:

A list of deposits made and checks written during September is shown below:

The Cash in Bank account balance on September 30 was \(\$ 14,386\). In reviewing checks returned by the bank, the accountant discovered that check No. 612 , written for \(\$ 817\) for advertising expense, was recorded in the cash disbursements journal as \(\$ 871\). The NSF check for \(\$ 991\), which Thurman deposited on September 24, was a payment on account from customer D. Walker.

Required

a. Prepare a bank reconciliation for Thurman, Inc., at September 30.

b. Prepare the necessary journal entries to bring the Cash in Bank account into agreement with the reconciled cash balance on the bank reconciliation.

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Bank Statement TO 10 Date Thurman, Inc. St. Louis, MO September 30 STATE BANK Deposits No. Date Charges Date Balance Aug. 31. $14,300 Sept. 1 $1,170 597 Sept. 1 $ 650 Sept. 1 14,820 2 1,120 607 5 1,850 2 15,940 5 850 608 5 1,100 5 13,840 9 744 609 9 552 8 13,200 15 585 610 8 640 9 13,392 17 1,540 611 15 817 15 13,160 25 1,028 612 17 488 17 14,212 30 680 614 25 920 25 14,320 NSF 29 991 29 13,329 SC 30 36 30 13,973 Item Codes: EC: Error Correction SC: Service Charge IN: Interest Earned DM: Debit Memo CM: Credit Memo OD: Overdraft RT: Returned Item NSF: Non-sufficient Funds