P7-12B (L010) (Petty Cash, Bank Reconciliation) Jonni Jones is reviewing the cash accounting for London, Inc., a local ha salon. Jones' review will focus on the petty cash account and the bank reconciliation for the month ended September 30, 201 She has collected the following information from London's bookkeeper for this task. Petty Cash 1. The petty cash fund was established on September 2, 2017, in the amount of $300. 2. Expenditures from the fund by the custodian as of September 30, 2017, were evidenced by approved receipts for the following. Postage expense $61.50 Mailing labels and other supplies 31.00 1.O.U. from employees 25.00 Shipping charges 79.36 Newspaper advertising 38.00 Miscellaneous expense 12.80 On September 30, 2017, the petty cash fund was replenished and increased to $400; currency and coin in the fund at that tim totaled $52.34. Bank Reconciliation ALPHA STATE BANK Bank Statement Disbursements Receipts Balance Balance, September 1, 2017 $12,637 Deposits $35,000 Note payment direct from customer (interest of $45) 1,585 Checks cleared during May $36,900 Bank service charges 20 Balance, September 30, 2017 12,302 London's Cash Account Balance, September 1, 2017 $ 12,172 Deposits during September 2017 36,200 Checks written during September 2017 (37,450) Deposits in transit are determined to be $1,560, and checks outstanding at September 30 total $1,800. Cash on hand (besides pett cash) at September 30, 2017, is $425. Instructions (a) Prepare the journal entries to record the transactions related to the petty cash fund for September. (b) Prepare a bank reconciliation dated September 30, 2017, proceeding to a correct cash balance, and prepare the journ entries necessary to make the books correct and complete. (c) What amount of cash should be reported in the September 30, 2017, balance sheet