On August 31, Sandhill Company had an unadjusted cash balance of $9,500. An examination of the August bank statement shows a balance of $8,570 on August 31, bank service charges of $30, deposits in transit of $2,540, interest earned of $14, outstanding cheques of $1,806, and an NSF cheque of $180. Prepare a bank reconciliation at August 31. (List items that increase balance as per bank & books first.) Sandhill Company Bank Reconciliation August 31 Adjusted cash balance per bank $ 5,940 Add 2: Deposits in transit $2,660 8,600 Less : Outstanding cheques $1,769 Adjusted cash balance per bank $ 6,831 Cash balance per books $ $ 7,000 Add : Interest earned 4 $11 $7,011 Less NSF cheque $150 Service charge $30 i Adjusted cash balance per books $ 6,831