Skysong, Inc.'s bank statement from Main Street Bank at August 31, 2022, gives the following information.

Balance, August 1$18,710Bank debit memorandum:August deposits71,310Safety deposit box fee$85Checks cleared in August68,618Service charge110Bank credit memorandum:Balance, August 3121,312Interest earned105

A summary of the Cash account in the ledger for August shows the following: balance, August 1, $19,010; receipts $74,310; disbursements $73,510; and balance, August 31, $19,810. Analysis reveals that the only reconciling items on the July 31 bank reconciliation were a deposit in transit for $4,860and outstanding checks of $4,560. In addition, you determine that there was an error involving a company check drawn in August: A check for $400to a creditor on account that cleared the bank in August was journalized and posted for $40.

Determine deposits in transit.

Determine outstanding checks. (Hint:You need to correct disbursements for the check error.)

Prepare bank reconciliation at August 31.(List items that increase balance as per bank & books first.)

Journalize the adjusting entries to be made bySkysong, Inc.at August 31.(Credit account titles are automatically indented when amount is entered. Do not indent manually.)