LO5 MBC P7-5A. Bank Reconciliation The bank reconciliation made by Thurman, Inc., on August 31 showed a de- posit in transit of $1,170 and two outstanding checks, No. 597 for $650 and No. 603 for $710. The reconciled cash balance on August 31 was $14,110. The following bank statement is available for September: Cambridge Business Publishers Chapter 7 Internal Control and Cash 7 361 Bank Statement TO Thurman, Inc. St. Louis, MO September 30 STATE BANK Date Deposits No. 1..... 9...... Sept. $1,170 597 2 1,120 607 5 850 608 9 744 609 15 585 610 17..... 1,540 611 25...... 1,028 612 30...... 680 614 NSF SC Item Codes: EC: Error Correction SC: Service Charge IN: Interest Earned Date Charges Date Balance Aug. 31... $14,300 Sept. 1...... $ 650 Sept. 1 14,820 5. 1,850 2..... 15,940 5 5..... 1,100 5...... 13,840 9 552 8...... 13,200 8 640 13,392 15 817 15... 13,160 17 488 14,212 25.... 920 14,320 29.... 991 13,329 30... 36 13,973 DM: Debit Memo CM: Credit Memo OD: Overdraft RT: Returned Item NSF: Non-sufficient Funds 17 25...... 29...... 30...... A list of deposits made and checks written during September is shown below: Deposits Made Sept. 1......... 4 8 12 16 24 29 30 Checks Written $1,120 No. 607 $1,850 850 608 1,100 744 609 552 585 610 640 1,540 611 488 1,028 612 871 680 613 310 1,266 614 920 615 386 $7.813 616 420 $7,537 The Cash in Bank account balance on September 30 was $14,386. In reviewing checks returned by the bank, the accountant discovered that check No. 612, written for $817 for advertising expense, was recorded in the cash disbursements journal as $871. The NSF check for $991, which Thurman deposited on September 24, was a payment on account from customer D. Walker. Required a. Prepare a bank reconciliation for Thurman, Inc., at September 30. b. Prepare the necessary journal entries to bring the Cash in Bank account into agreement with the reconciled cash balance on the bank reconciliation