On August 31, 2019, the balance in the checkbook and the Cash account of the Dry Creek Bed and Breakfast was $12,335. The balance shown on the bank statement on the same date was $13,227.

Notes

The firms records indicate that a $1,510 deposit dated August 30 and a $707 deposit dated August 31 do not appear on the bank statement.

A service charge of $8 and a debit memorandum of $350 covering an NSF check have not yet been entered in the firms records. (The check was issued by Art Corts, a credit customer.)

The following checks were issued but have not yet been paid by the bank:

Check 712,	$	116
Check 713,	$	131
Check 716,	$	244
Check 736,	$	583
Check 739,	$	84
Check 741,	$	126

A credit memorandum shows that the bank collected a $2,114 note receivable and interest of $69 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?

Bank Rec, General Journal, Analyze