Preparing a bank reconciliation andPage $573$recording adjustments LOGCHECK FIGURE: $1.$ Adjusted book balance, $$4,871\mathrm{.}89$Pelzer Company reconciled its bank and book statement balances of Cash on August $31$ and showed two cheques outstanding at that time, #$5888$ for $$6,220\mathrm{.}00$ and #$5893$ for $$1,485\mathrm{.}65.$The following information was available for the September $30,2023,$ reconciliation:From the September $30,2023,$ bank statement:Balance of previous statement on Aug. $31/236$ deposits and other credits totalling$9$ cheques and other debits totallingCurrent Balance as of Sept. $30/2310,674\mathrm{.}5022,417\mathrm{.}0526,296\mathrm{.}056,795\mathrm{.}50216,436\mathrm{.}80+$ DepositChequing Account TransactionsDateTransactionAmountDescriptionDateSept.Amount$4,230\mathrm{.}60$TransactionDescriptionSept$\mathrm{.}055,643\mathrm{.}20+$ Deposit$25+$ Deposit$122,561\mathrm{.}45+$ Deposit$3045\mathrm{.}00+$ Interest$171,176\mathrm{.}50-$NSF cheque$303,500\mathrm{.}00+$ Credit memoDateCheque No$.$AmountDateSept$\mathrm{.}0307081059045901590559039,340\mathrm{.}551,450\mathrm{.}00338\mathrm{.}251,320\mathrm{.}15$Sept$\mathrm{.}22242829$From Pelzer Company's accounting records:CashDate$2023$Aug.Sept.ExplanationPRDebit$31$ Balance$3030$CR$12$CD$2320,005\mathrm{.}75$Cheque No$\mathrm{.}5888590959075902$Credit$15,071\mathrm{.}21$Deposits MadeCheques WrittenSept$\mathrm{.}5$$ $5,643\mathrm{.}20$No$\mathrm{.}5901$$ $1,450\mathrm{.}00122,561\mathrm{.}455902985\mathrm{.}60216,436\mathrm{.}8059031,320\mathrm{.}15254,230\mathrm{.}6059043,940\mathrm{.}55301,133\mathrm{.}705905338\mathrm{.}25$Total Sept. Cash Receipts$$20,005\mathrm{.}755906715\mathrm{.}2659073,324\mathrm{.}605908856\mathrm{.}4059092,140\mathrm{.}40$Total Sept. Cash Disbursements$$15\mathrm{.}071\mathrm{.}21$Cheque #$5904$ was correctly written for $$9,340\mathrm{.}55$ to pay forPage $574$computer equipment; however, the bookkeeper misread the amount and entered it in the accounting records with a debit to Computer Equipmentand a credit to Cash as though it were for $$3,940\mathrm{.}55.$ The NSF cheque was originally received from a customer, Lisa Willis, in payment of her account. Its return was not recorded when the bank first notified the company. The credit memo resulted from an electronic fund transfer of $$3,550$ for a customer payment. The bank had deducted a $$50$ bank service charge. The collection has not been recorded.Required$1.$ Prepare a September $30$ bank reconciliation for the company$\mathrm{.}2.$ Prepare the general journal entries needed to adjust the book balance of cash to the reconciled balance.Analysis Component:The preceding bank statement discloses three places where the cancelled cheques returned with the bank statement are not numbered sequentially. In other words, some of the prenumbered cheques in the sequence are missing. Several possible situations would explain why the cancelled cheques returned with a bank statement might not be numbered sequentially. Describe three possible explanations.