Martinez Company has just received the August 31, 2020, bank statement, which is summarized below.

County National Bank		Disbursements			Receipts		Balance
Balance, August 1							$10,409
Deposits during August					$35,774		46,183
Note collected for depositor, including $44 interest					1,155		47,338
Checks cleared during August		$38,330					9,008
Bank service charges		22					8,986
Balance, August 31							8,986

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

Cash
Balance, August 1		11,166	Disbursements in August		38,781
Receipts during August		38,885

Deposits in transit at August 31 are $4,222, and checks outstanding at August 31 total $1,167. Cash on hand at August 31 is $344. The bookkeeper improperly entered one check in the books at $147 which was written for $165 for supplies (expense); it cleared the bank during the month of August.

(a)

Prepare a bank reconciliation dated August 31, 2020, proceeding to a correct balance.

MARTINEZ COMPANY Bank Reconciliation, August 31, 2020 County National Bank
Cash on handDeposits in transitBank service chargesBalance per bank statement, August 31, 2020Outstanding checksCorrect cash balanceNote and interest collectedUnderstated check for supplies					$
AddLess:
	Outstanding checksCash on handCorrect cash balanceDeposits in transitBalance per bank statement, August 31, 2020Bank service chargesUnderstated check for suppliesBalance per books, August 31, 2020Note and interest collected		$
	Understated check for suppliesBank service chargesBalance per bank statement, August 31, 2020Correct cash balanceBalance per books, August 31, 2020Outstanding checksNote and interest collectedDeposits in transitCash on hand
LessAdd:	Cash on handBalance per bank statement, August 31, 2020Outstanding checksNote and interest collectedBalance per books, August 31, 2020Correct cash balanceDeposits in transitBank service chargesUnderstated check for supplies
Correct cash balanceBank service chargesDeposits in transitNote and interest collectedBalance per books, August 31, 2020Cash on handBalance per bank statement, August 31, 2020Understated check for suppliesOutstanding checks					$
Cash on handBank service chargesNote and interest collectedOutstanding checksDeposits in transitBalance per books, August 31, 2020Understated check for suppliesCorrect cash balance					$
AddLess:	Balance per bank statement, August 31, 2020Bank service chargesCash on handNote and interest collectedUnderstated check for suppliesCorrect cash balanceDeposits in transitBalance per books, August 31, 2020Outstanding checks
LessAdd:
	Balance per books, August 31, 2020Cash on handUnderstated check for suppliesDeposits in transitNote and interest collectedOutstanding checksBank service chargesCorrect cash balanceBalance per bank statement, August 31, 2020		$
	Bank service chargesNote and interest collectedUnderstated check for suppliesCorrect cash balanceDeposits in transitBalance per books, August 31, 2020Outstanding checksBalance per bank statement, August 31, 2020Cash on hand
Balance per books, August 31, 2020Correct cash balanceNote and interest collectedDeposits in transitCash on handBank service chargesOutstanding checksBalance per bank statement, August 31, 2020Understated check for supplies					$

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(b)

Prepare any entries necessary to make the books correct and complete. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
Aug. 31, 2020
	(To record collection of note and interest)
Aug. 31, 2020
	(To record August bank charges)
Aug. 31, 2020
	(To record error in recording check for supplies)

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(c)

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

Cash to be reported in the August 31 balance sheet

$

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