Exercise 8-12 a-b (Video) The information below relates to the Cash account in the ledger of Waterway Company, Balance September 1-$17,270; Cash deposited-$54,390. Balance September 30-$17,804; Checks written-$63,856. The September bank statement shows a balance of $15,822 on September 30 and the following memoranda. Credits Debits Collection of $1,692 note plus interest $38 $1,730 NSF check: Richard Nance $625 Interest earned on checking account $53 Safety deposit box rent $73 At September 30, deposits in transit were $4,650, and outstanding checks totaled $2,583 Prepare the bank reconciliation at September 30. (List items that increase cash balance first.) WATERWAY COMPANY Bank Reconciliation s s Prepare the adjusting entries at September 30, assuming (1) the NSF check was from a customer on account, and (2) no interest had been accrued on the note. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit Sept. 30 (To record note receivable.) Sept. 30 (To record interest earned.) Sept. 30 (To record NSF check.) Sept. 30 (To record safety deposit rent.) Click if you would like to Show Work for this question: Open Show Work