Bank Reconciliation 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:

Bank StatementToThurman, Inc. September 30 St. louis, MO STATE BANK DateDepositsNo. DateCharges DateBalance Aug.31$14,300Sept.1$1,170597Sept.1$650Sept.114,820 21,120607 51,850 215,940 5850608 51,100 513,840 9744609 8640 813,200 15585610 9552 913,392 171,540611 15817 1513,160 251,028612 17488 1714,212 30680614 25920 2514,320 NSF 29991 2913,329 SC 3036 30$13,973 Item Codes:EC: Error Correction DM: Debit Memo CM: Credit Memo SC: Service Charge OD: Overdraft RT: Returned Item IN: Interest Earned NSF: Non-sufficient Funds

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

Deposits MadeChecks WrittenSept.1$1,120No.607$1,850 4850 6081,100 8744 609552 12585 610640 161,540 611871 241,028 612488 29680 613310 301,266 614920 $7,813 615386 616420 $7,537

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. 611, written for $817 for advertising expenses, was recorded in the cash disbursement journal as $871. The NSF check for $991, which Thurman deposited on September 24, was a payment on account from customer D. Walker.

Required

1. Prepare a bank reconciliation for Thurman, Inc., at September 30.
2. Prepare the necessary journal entries to bring the Cash in Bank account into agreement with the reconciled cash balance on the bank reconciliation.