ed Exercise 5-10 (Algo) Bank reconciliation adjustment LO 3 Refer to the Information given below. a. The August 31 balance shown on the bank statement is $9,790. b. There is a deposit in transit of $1,253 at August 31. c. Outstanding checks at August 31 totaled $1,894. d. Interest credited to the account during August but not recorded on the company's books amounted to $99. e. A bank charge of $36 for checks was made to the account during August. Although the company was expecting a charge, the amount was not known until the bank statement arrived. f. In the process of reviewing the canceled checks, it was determined that a check issued to a supplier in payment of accounts payable of $632 had been recorded as a disbursement of $364. g. The August 31 balance in the general ledger Cash account, before reconciliation, is $9,354. Required: a-1. Show the reconciling items in a horizontal model that should be prepared to reflect the reconciling items as on August 31. (Use amounts with for Increases and amounts with- for decreases.) Assets Balance Sheet Liabilities Cash (205) Accounts payable Stockholders Equity Net income (265) 6-2. Prepare the adjusting journal entry that should be prepared to reflect the reconciling items. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Event General Journal Cash Interest receivable ** Debit Credit 99