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

Balance, August 1 $18,660 Bank debit memorandum:

August deposits $71,260 Safety deposit box fee $125

Checks cleared in August $68,578 Service charge $150

Bank credit memorandum: Balance, August 31 $21,212

Interest earned $145

A summary of the Cash account in the ledger for August shows the following: balance, August 1, $18,960; receipts $74,260; disbursements $73,470; and balance, August 31, $19,750. Analysis reveals that the only reconciling items on the July 31 bank reconciliation were a deposit in transit for $4,900 and outstanding checks of $4,600. 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.

I need to determine the deposits in transit, determine outstanding checks, prepare a bank reconciliation at August 31 (List items that increase balance as per bank and books first.), and journalize the adjusting entries to be made by Teal Mountain Inc. at August 31.