Brief Exercise 4-27 Bank Reconciliation Hula Corp. utilizes J.P. Morgan Chase in its banking transactions. For the month of August, 2019, J.P. Morgan Chase presented Hula with its bank statement as follows: Balance, August 31, 2019 Service charge for August Interest earned during August NSF check from Jeffrey Corp. (deposited by Hula) Note ($11,000) and interest ($425) collected for Hula from a customer $64,900 100 875 450 11,425 Upon receiving the bank statement, Hula's accountants analyzed its cash transactions for possible reconciling items between its cash balance per books and J.P. Morgan Chase's cash balance: Checking account balance per Hula's books Outstanding checks as of August 31 Deposit in transit at August 31 Error in recording check 9288 issued by Hula $53,453 3,700 3,940 The correct amount of check 9288 is $770. It was recorded as a cash disbursement of $707 by mistake. The check was issued to pay for merchandise purchases. The check appeared on the bank statement correctly