On August $31,20$X$1,$ the balance in the checkbook and the Cash account of the Dry Creek Bed and Breakfast was $$12,831.$ The balance shown on the bank statement on the same date was $$13,677.$NotesThe firms records indicate that a $$1,700$ deposit dated August $30$ and a $$701$ deposit dated August $31$ do not appear on the bank statement.A service charge of $$35$ and a debit memorandum of $$250$ covering an NSF check have not yet been entered in the firms records. $($The check was issued by Andrew Corollo, a credit customer.$)$The following checks were issued but have not yet been paid by the bank:Check $712,$$ $125$Check $713,$$ $130$Check $716,$$ $245$Check $736,$$ $577$Check $739,$$ $187$Check $741,$$ $118$A credit memorandum shows that the bank collected a $$2,095$ note receivable and interest of $$55$ for the firm. These amounts have not yet been entered in the firms records.Required:Prepare a bank reconciliation statement for the firm as of August $31.$Record general journal entries for items on the bank reconciliation statement that must be journalized.Analyze:What effect did the journal entries recorded as a result of the bank reconciliation have on the fundamental accounting equation?