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

County National Bank		Disbursements			Receipts		Balance
Balance, August 1							$9,369
Deposits during August					$32,200		41,569
Note collected for depositor, including $40 interest					1,040		42,609
Checks cleared during August		$34,500					8,109
Bank service charges		20					8,089
Balance, August 31							8,089

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

Cash
Balance, August 1		10,050	Disbursements in August		34,903
Receipts during August		35,000

Deposits in transit at August 31 are $3,800, and checks outstanding at August 31 total $1,050. Cash on hand at August 31 is $310. The bookkeeper improperly entered one check in the books at $146.50 which was written for $164.50 for supplies (expense); it cleared the bank during the month of August.

Logan Bruno
Bank Reconciliation, August 31, 2017
County National Bank
Balance per bank statement, August 31, 2014		8,089
Add: Cash on hand	310
Deposits in transit	3,800	4,110
		12,199
Deduct: Outstanding checks		1,050
Correct cash balance		11,149
Balance per books, August 31, 2017 ($10,050+35,000-34,903)		10,147
Add: Note and interest collected		1,040
Deduct: Bank service charges	20
Understated check for supplies ($164.50-$146.50)	18	38
Correct cash balance		11,149

(b) Prepare any entries necessary to make the books correct and complete:-

Account titles and explanation	Debit	Credit
Cash	1,040
Notes Receivable		1,000
Interest Receivable		40
(To record collection of note and interest)
Office Expense (Bank Charges)	20
Cash		20
(To record August bank charges)
Supplies Expense	18
Cash		18
(To record error in recording check for supplies)

A. What is the correct ending balance for Cash?

***Hint: don't forget to include the cash on hand in your answer (also note that this same amount is already included in the general ledger Cash account)

B. What is the net adjustment to Cash including all journal entries (show as a negative if the net adjustment is a credit) that you prepared?