On August 31, 2019, the balance in the checkbook and the Cash account of the Dry Creek Bed and Breakfast was $12,246. The balance shown on the bank statement on the same date was $13,177. Notes a. The firm's records indicate that a $1,410 deposit dated August 30 and a $697 deposit dated August 31 do not appear on the bank statement. b. A service charge of $9 and a debit memorandum of $300 covering an NSF check have not yet been entered in the firm's records. (The check was issued by Art Corts, a credit customer.) c. The following checks were issued but have not yet been paid by the bank: Check 712, $106 Check 713, $ 121 Check 716, $234 Check 736, 9573 Check 739, $ 74 Check 741, $116 d. A credit memorandum shows that the bank collected a $2,064 note receivable and interest of $59 for the firm. These amounts have not yet been entered in the firm's records. Required: 1. Prepare a bank reconciliation statement for the firm as of August 31. 2. 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? Prepare a bank reconciliation statement for the firm as of August 31. DRY CREEK BED AND BREAKFAST Bank Reconciliation Statement August 31, 2019 Balance on bank statement Additions: Deductions: Total deductions Adjusted bank balance Balance in books Additions: Deductions: Adjusted book balance Journal entry worksheet 2 3 4 5 Record the deposit in transit. Note: Enter debits before credits. General Journal | Debit Credit Date Aug 31, 2019 Record entry Clear entry View general journal Journal entry worksheet