Harrison Company maintains a checking account at the bank of Milwaukee. The bank provides a bank statement along with canceled checks on the last day of each month. The August 2016 bank statement included the following information:

Balance, August 1, 2016 $68,326

Deposits 245,300

Checks processed (236,222)

Service charges (50)

NSF checks (680)

Monthly deposit into savings account deducted directly by bank from account (2,000)

Balance, August 31, 2016 $74,674

The companys general ledger account had a balance of $78,984 at the end of August. Deposits outstanding totaled $8,200 and all checks written by the company were processed by the bank except for those totaling $8,420. In addition, a $2,000 check to supplier correctly recorded by the bank was incorrectly recorded by the company as a $200 credit to cash.

Required:

1. Prepare a bank reconciliation for the month of August.

2. Prepare the necessary journal entries at the end of August to adjust the general ledger cash account