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On August 31, 2021. Pharoah Company had a cash balance per its books of $26,720. The bank statement on that date showed a balance of

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On August 31, 2021. Pharoah Company had a cash balance per its books of $26,720. The bank statement on that date showed a balance of $17.220. A comparison of the bank statement with the Cash account revealed the following 1. 2 3. 4. The August 31 deposit of $17,230 was not included on the August bank statement The bank statement shows that Pharoah received EFT deposits from customers on account totalling $2,350 in August Pharoah has not recorded any of these amounts. Cheque #673 for $1.220 was outstanding on July 31. It did not clear the bank account in August. All of the cheques written in August have cleared the bank by August 31, except for cheque #710 for $2,300, and #712 for $2.460. The bank statement showed on August 29 an NSF charge of $554 for a cheque issued by R. Dubai, a customer, in payment of their account. This amount included an $10 service charge by Pharoah's bank. The company's policy is to pass on all NSE service charges to the customer Bank service charges of $28 were included on the August statement The bank recorded cheque #705 for $146 as $164. The cheque had been issued to pay for freight out on a sale. Pharoah had correctly recorded the cheque. 5 6. Prepare a bank reconciliation at August 31. (List items that increase balance as per bank & books first.) PHAROAH COMPANY Bank Reconciliation August 31, 2021 August 31, 2021 NSF cheque EFT deposits of Accounts Payable Deposits in transit Error Cheque # 710 Error Cheque # 705 Adjusted cash balance per bank Cash balance per bank statement Outstanding cheque # 712 Bank service charge Outstanding cheque # 673 Outstanding cheque # 710 EFT deposits of Accounts Receivable $ Prepare the necessary adjusting entries on August 31 (Credit account tittes are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit Credit Aug. 31 (To record electronic receipt from customer on account) Aug 31 (To record NSF cheque & bank service charge expense)

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