I. Company has just received the August 31, 2017, bank statement, which is summarized below.

County National Bank		Disbursements			Receipts		Balance
Balance, August 1							$11,927
Deposits during August					$40,991		52,918
Note collected for depositor, including $51 interest					1,324		54,242
Checks cleared during August		$43,919					10,323
Bank service charges		25					10,298
Balance, August 31							10,298

The general ledger Cash account contained the following entries for the month of August.

Cash
Balance, August 1		12,794	Disbursements in August		44,446
Receipts during August		44,555

Deposits in transit at August 31 are $4,837, and checks outstanding at August 31 total $1,337. Cash on hand at August 31 is $395. The bookkeeper improperly entered one check in the books at $145.50 which was written for $154.50 for supplies (expense); it cleared the bank during the month of August.

A. Prepare a bank reconciliation dated August 31, 2014, proceeding to a correct balance.

B. Prepare any entries necessary to make the books correct and complete.

C. What amount of cash should be reported in the August 31 balance sheet?