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LOS SIBE 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

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LOS SIBE 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: Chapter 7 Internal Control and Cash 361 Bank Statement TO Thurman, Inc. St. Louis, MO Date Deposits No. Sept. Sept. 31... 1...... 2 5 9 15 17 25 30 $1,170 1,120 850 744 585 1,540 1,028 680 597 607 608 609 610 611 September 30 STATE BANK Date Charges Date Balance Aug. $14,300 1 $ 650 Sept. 1 14,820 5 1,850 2 15,940 5 1,100 5 13,840 8 640 8 13,200 9 552 9 13,392 15 817 15 13,160 17 488 17 14,212 25 920 25 14,320 29 991 29 13,329 30 36 30 13,973 DM: Debit Memo CM: Credit Memo OD: Overdraft RT: Returned Item NSF: Non-sufficient Funds 612 614 NSF SC Item Codes: EC: Error Correction SC: Service Charge IN: Interest Earned A list of deposits made and checks written during September is shown below: Deposits Made Sept. 4 8 12 16 24 29 30 $1,120 850 744 585 1,540 1,028 680 1,266 Checks Written No. 607 608 609 610 611 612 613 614 615 616 $1,850 1,100 552 640 871 488 310 920 386 420 $7,537 $7,813 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. 611, 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 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

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