Entries for Bank Reconciliation

The following data were accumulated for use in reconciling the bank account of Creative Design Co$.$ for August $20$Y$6$:

Cash balance according to the company's records at August $31,$ $$21,280.$

Cash balance according to the bank statement at August $31,$ $$22,430.$

Checks outstanding, $$4,320.$

Deposit in transit not recorded by bank, $$3,470.$

A check for $$480$ in payment of an account was erroneously recorded in the check register as $$840.$

Bank debit memo for service charges, $$60.$

Journalize the entries that should be made by the company that $($a$)$ increase cash and $($b$)$ decrease cash.

a$.20$Y$6$ Aug. $31$

b$.$ Aug. $31$