2 (37 marks) Part I (19 marks) The bank statement from Universal Bank showed balance of Cassa Company (Cassa) as at 31 August 2021 was $54,321. But end of August cash account balance in the general ledger of Cassa was $49,476. There were no deposit-in-transit and outstanding checks carried over from the previous months. When comparing the book with the bank statement, Cassa found: (1) (2) (3) (4) (5) (6) (7) Bosco directly credited $42,800 to Cassa's bank account to pay Cassa for a note payable plus interest. The principal amount he borrowed was $40,000. On the bank statement there was a cheuqe no. 1234, marked as NSF check for $1,155 that Cassa received to settle an accounts receivable. The bank statement showed deposit of Cassa during the month was 61,000, but the bank statement showed deposit received in August was 20,600. There was a cheque cleared by the bank to pay for $1,500 supplies that Cassa bought. It was recorded as $2,500 in the book by mistake. In the bank statement there is a bank service charge of $100. The bank has erroneously credited to Cassa's account $ 1,400 for a deposit that actually belonged to Cossco. An examination on the bank statement revealed that check no. 231 $450, check no 236 $550, check no 241 $300 issued by Cassa in August were not included in the list of checks cleared by the bank. Required: (a) Prepare bank reconciliation for the month of August 2021. (12 marks) (b) Prepare the necessary journal entries to update the accounting records. (7 marks) 3