Exam - 125 Question 7 of 11 III On August 31, 2021, Sandhill Company had a cash balance per its books of $26.990. The bank statement on that date showed a balance of $17,510. A comparison of the bank statement with the Cash account revealed the folowing. 1. The August 31 deposit of $17,160 was not included on the August bank statement. 2. The bank statement shows that Sandhill received EFT deposits from customers on account totalling $1,970 in August. Sandhill has not recorded any of these amounts. 3. Cheque #673 for $1,190 was outstanding on July 31. It did not clear the bank account in August. All of the cheques written in August have cleared the bank by August 31, except for cheque #710 for $2.150. and #712 for $2,580. 4. The bank statement showed on August 29 an NSF charge of $140 for a cheque issued by R. Dubai, a customer, in payment of their account. This amount included an $10 service charge by Sandhill's bank. The company's policy is to pass on all NSF service charges to the customer. 5. Bank service charges of $25 were included on the August statement. 6. The bank recorded cheque #705 for $149 as $194. The cheque had been issued to pay for freight out on a sale. Sandhill had. correctly recorded the cheque. am Question 7 of 11 - 725 Tii Prepare a bank reconciliation at August 31. (List Items that increase balance as per bank & books first.). SANDHILL COMPANY Bank Reconciliation August 31, 2021 $ v A GA Exam Question 7 of 11 Prepare the necessary adjusting entries on August 31. (Credit account titles are automatically Indented when the amount is entered. Do not Indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts.) Debit Credit Date Account Titles and Explanation Aug. 31 (To record electronic receipt from customer on account) Aug. 31 V (To record NSF cheque & bank service charge expense)