Bank Reconciliation The bank reconciliation made by Winton, Inc., on August 31 showed: Deposit in transit of $5,120 Outstanding checks no.597 $3,320 no.603 $2,560 The reconciled cash balance on August 31 was $56,440 The following bank statement is available for September: Bank Statement TO Date Sept. Date Sept. September 30 STATE BANK Balance $57,200 59,000 Winton, Inc. St. Louis, MO Deposits No. $5,120 597 4,480 607 3,400 608 2,976 609 5,440 610 6,160 611 4,112 612 2,720 614 NSF Charges Date $3,320 Aug. 31 7,400 Sept. 1 4,400 2,208 63,480 55,080 2,560 52,520 1,952 53,288 56,032 60,240 2,696 3,680 4,112 25 29 60,672 SC 30 144 29 30 56,560 59,136 CM: Credit Memo RT: Returned Item Item codes EC: Error Correction DM: Debit Memo SC: Service Charge OD: Overdraft IN: Interest Earned NSF: Non-sufficient Funds A list of deposits made and checks written during September is shown below: Deposits Made Checks Written Sept. 1 $4,480 No. 607 $7,400 4 3,400 608 4,400 8 2,976 609 2,208 12 5,440 610 2,560 16 6,160 611 1,952 24 4,112 612 2,984 29 2,720 613 1,240 5,064 614 3,680 $34,352 615 1,544 616 1,680 $29,648 The Cash in Bank account balance on September 30 was $61,144. In reviewing checks returned by the bank, the accountant discovered that check No. 612 written for $2,696 for advertising expense, was recorded in the cash disbursements journal as $2,984. The NSF check written for $4,112, 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. Bank reconciliation Journal entries WINTON, INC. Bank Reconciliation September 30 $ Add: Check No. 612 for recorded as Less: NSF Check of D. Walker Less: Outstanding checks (list in numerical order) Check no. Amount 603 $ 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. Bank reconciliation Journal entries General Journal Description Date Debit Credit Sept 30 To correct error in recording check 612. 30 To reclassify NSF check as an accounts receivable. To record bank service charge