Bank Reconciliation The bank reconciliation made by Thurman, Inc., on August 31 showed: Deposit in transit of $1,170 Outstanding checks no.597 $650 $710 no.603 The reconciled cash balance on August 31 was $14,110 The following bank statement is available for September: Bank Statement TO Thurman, Inc. September 30 St.Louis, MO STATE BANK Deposits Charges Balance Date No. Date Date $1,170 597 $650 Aug. 31 $14,300 Sept. 1 Sept. 1 1,850 Sept. 2 1,120 607 5 1 14,820 1,100 850 608 5 2 15,940 744 609 13,840 552 15 585 610 640 8 13,200 13,392 17 1,540 611 15 817 9 488 25 1,028 612 17 15 16,160 30 680 614 25 920 17 14,212 NSF 29 991 25 14,320 13,329 SC 30 36 29 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 LC LC A list of deposits made and checks written during September is shown below: Checks Written Deposits Made Sept. 1 $1,120 No. 607 $1,850 608 1,100 4 850 744 609 552 12 585 610 640 16 1,540 611 488 871 24 1,028 612 29 680 613 310 30 1,266 614 920 $7,813 615 386 616 420 $7,537 September 30 was $14,386. In reviewing checks returned by the bank, the accountant discovered that check No. 612 written for $8 The Cash in Bank account balance on ' Required 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. a. a. THURMAN, INC. Bank Reconciliation September 30 0 xBalance from General Ledger 0 x Ending Balance from Bank Sta $ $ Add: Deposits not credited by * 0 x Add: Check No. 612 for 0 x 0 x 0 x recorded as 0 0 x 0 x Less: Outstanding checks (list in numerical order) Less: NSF Check of D. Walker Check no. Amount Service charge 603 0 x 0 x 0 x 0 x 0 x 0 0 0 x 0 x 0 x Reconciled Cash Balance 0 xReconciled Cash Balance $ 0 x b. General Journal Description Debit Credit Date Sept 30 Cash in Bank 0 x $ 0 Advertising Expense 0 0 x To correct error in recording check 612 30 Accounts Receivable 0 x 0 Cash in Bank 0 0 x To reclassify NSF check as an accounts receivable. 30 Miscellaneous Expense 0 x 0 Cash in Bank 0 x 0 To record bank service charge