Bank Reconciliation The bank reconciliation made by Winton, Inc., on August 31 showed: Deposit in transit of $1,408 no.597 $913 no.603 $704 $15,521 Outstanding checks The reconciled cash balance on August 31 was The following bank statement is available for September: Bank Statement September TO Winton, Inc. 30 STATE BANK Balance St. Louis, MO Date Deposits No. Date Charges Date 1,408 597 Sept. 1 913 Aug. 31 2,035 Sept. 1 1,210 607 $15,730 16,225 17,457 15,147 14,443 14,654 15,409 16,566 16,685 15,554 16,262 Sept. 1 2 1,232 607 935 608 818 609 1,496 610 1,694 611 1,131 612 748 614 NSF SC 537 741 1,012 1,131 40 25 15 25 29 30 25 29 EC: Error Correction SC: Service Charge IN: Interest Earned Item DM: Debit Memo CM: Credit Memo codes OD: Overdraft NSF: Non-sufficient Funds RT: Returned Item A list of deposits made and checks written during September is shown below: Deposits Made Checks Written Sept. 1 $1,232 No. 607 $2,035 608 1,210 609 607 610 704 11 537 612 820 613 341 614 1,012 615 425 616 462 $8,153 935 8 818 12 1,496 16 1,694 24 1,131 29 748 30 1,393 $9,447 The Cash in Bank account balance on September 30 was $16,815. In reviewing checks returned by the bank, the accountant discovered that check No. 612 written for $741 for advertising expense, was recorded in the cash disbursements journal as $820. The NSF check written for $1,131, which Winton deposited on September 24, was a payment on account from customer D. Walker Required a. Prepare a bank reconciliation for Winton, 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. WINTON, INC. Bank Reconciliation September 30 Ending Balance from Bank Statement # $ 16,26. Balance from General Ledger Add: Deposits not credited by bank1,393 Add: Check No. 612 for 15,72:recorded as Less: Outstanding checks (list in numerical order) Less: NSF Check of D. Walker Check no Amount 603 Service charge 613 615 616 Reconciled Cash Balance Reconciled Cash Balance b. General lournal Date Description Debit Credit Sept 30 To correct error in recording check 612. 30 To reclassify NSF check as an accounts receivable 30 Ending Balance from Bank Statement # $ 16,26: Balance from General Ledger Add: Deposits not credited by bank # 1,393 Add: Check No. 612 for 15,72 recorded as Less: Outstanding checks (list in numerical order) Less: NSF Check of D. Walker 603 Service charge 615 616 Reconciled Cash Balance Reconciled Cash Balance General Journal Date Description Debit Credit Sept 30 To correct error in recording check 612. 30 To reclassify NSF check as an accounts receivable 30 To record bank service charge