Bonita Company has just received the August 31, 2020, bank statement, which is summarized below.

County National Bank		Disbursements		Receipts		Balance
Balance, August 1							$ 11,674
Deposits during August					$ 40,121		51,795
Note collected for depositor, including $ 50 interest					1,296		53,091
Checks cleared during August		$ 42,987					10,104
Bank service charges		25					10,079
Balance, August 31							10,079

The general ledger Cash account contained the following entries for the month of August.

Cash
Balance, August 1		12,522	Disbursements in August		43,493
Receipts during August		43,610

Deposits in transit at August 31 are $ 4,735, and checks outstanding at August 31 total $ 1,308. Cash on hand at August 31 is $ 386. The bookkeeper improperly entered one check in the books at $ 147which was written for $ 165for supplies (expense); it cleared the bank during the month of August.

(a)

Prepare a bank reconciliation dated August 31, 2020, proceeding to a correct balance.

BONITA COMPANY Bank Reconciliation, August 31, 2020 County National Bank
Deposits in transit Correct cash balance Note and interest collected Outstanding checks Bank service charges Understated check for supplies Balance per bank statement, August 31, 2020Cash on hand				$
Less Add:
	Bank service charges Deposits in transit Outstanding checks Understated check for supplies Cash on hand Correct cash balance Balance per books, August 31, 2020Note and interest collected Balance per bank statement, August 31, 2020		$
	Understated check for supplies Deposits in transit Outstanding checks Correct cash balance Balance per books, August 31, 2020Balance per bank statement, August 31, 2020Bank service charges Cash on hand Note and interest collected
Add Less:	Balance per bank statement, August 31, 2020Note and interest collected Correct cash balance Understated check for supplies Cash on hand Outstanding checks Deposits in transit Bank service charges Balance per books, August 31, 2020
Correct cash balance Cash on hand Deposits in transit Balance per books, August 31, 2020Bank service charges Note and interest collected Understated check for supplies Outstanding checks Balance per bank statement, August 31, 2020				$
Bank service charges Balance per books, August 31, 2020Cash on hand Deposits in transit Outstanding checks Understated check for supplies Correct cash balance Note and interest collected				$
Less Add:	Outstanding checks Note and interest collected Bank service charges Understated check for supplies Balance per bank statement, August 31, 2020Correct cash balance Balance per books, August 31, 2020Cash on hand Deposits in transit
Add Less:
	Understated check for supplies Note and interest collected Balance per bank statement, August 31, 2020Outstanding checks Deposits in transit Bank service charges Correct cash balance Cash on hand Balance per books, August 31, 2020		$
	Understated check for supplies Outstanding checks Bank service charges Deposits in transit Balance per books, August 31, 2020Note and interest collected Balance per bank statement, August 31, 2020Correct cash balance Cash on hand
Note and interest collected Balance per books, August 31, 2020Deposits in transit Correct cash balance Understated check for supplies Outstanding checks Cash on hand Bank service charges Balance per bank statement, August 31, 2020				$

(b)

Prepare any entries necessary to make the books correct and complete. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
Aug. 31, 2020
	(To record collection of note and interest)
Aug. 31, 2020
	(To record August bank charges)
Aug. 31, 2020
	(To record error in recording check for supplies)

(c)

What amount of cash should be reported in the August 31st balance sheet?

please provide step-by-step explanation of solution