1. Using the following information, prepare a bank reconciliation for Dunbar Associates for August 31, 2017:

- The bank statement balance $4,690.

- The cash account balance is $5,080.

- Outstanding checks amounted to $715.

- Deposits in transit are $1,020.

- The bank service charge is $40.

- A check for $72 for supplies was recorded as $27 in the ledger.

2. Journalize the entires to record the following:

- Aug 1. Established a petty cash fund of $500.

- Aug 30. The amount of cash in the pretty cash fund is now $190. The fund is replenished based on the following receipts: office supplies, $220; postage, $80. Record any discrepancy in the cash short and over account.

Required

Prepare bank reconciliation and journalize the entires.