Question 2 Larkspur, Inc.'s bank statement from Main Street Bank at August 31, 2017, gives the following information. Balance, August 1 August deposits Checks cleared in August Bank credit memorandum: Interest earned $18,525 Bank debit memorandum: 71,125 Safety deposit box fee 68,603 Service charge Balance, August 31 120 $ 100 125 20,942 A summary of the Cash account in the ledger for August shows the following: balance, August 1, $18,825; receipts $74,125; disbursements $73,495; and balance, August 31, $19,455. Analysis reveals that the only reconciling items on the July 31 bank reconciliation were a deposit in transit for $4,875 and outstanding checks of $4,575. In addition, you determine that there was an error involving a company check drawn in August: A check for $400 to a creditor on account that cleared the bank in August was journalized and posted for $40. Determine deposits in transit. Deposits in transit $ e Textbook and Media List of Accounts Determine outstanding checks. (Hint: You need to correct disbursements for the check error.) Outstanding checks $ Prepare a bank reconciliation at August 31. (List items that increase balance as per bank & books first.) LARKSPUR, INC. Bank Reconciliation Prepare a tabular analysis for the adjustments to be made by Larkspur, Inc. at August 31. Include margin explanations for the changes in revenues and expenses. (If a transaction results in a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.) Assets Stockholders' Equity Liabilities Accts. Pay. Cash Rev. Exp. Aug. 31