The August, current year, bank statement for Allison Company and the August, current year, ledger account for cash follow: BANK STATEMENT Checks and EFTS Deposits Date Aug. 1 $ 415 $11.850 475 285 800 215 EFT Balance $ 17,560 17,145 28.995 28.520 28.235 27,435 27.220 31.370 31.075 10,825 17.775 16.925 19.625 19,490 4,150 295 $20,250 6,950 850 EFT 135 + 2.700 *$2,700 interest collected. TBank service charge. Aug. 1 Balance 16,385 Cash (A) Checks written and electronic funds transfers Aug. 2 Deposits Aug 2 EFT 215 800 180 11,850 4,150 6,950 5,500 460 EFT 850 295 20,250 Outstanding checks at the end of July were for $285, $475, and $415. No deposits were in transit at the end of July. Required: 1. Compute the deposits in transit at the end of August by comparing the deposits on the bank statement to the deposits listed Deposits in transit 2. Compute the outstanding checks at the end of August by comparing the checks listed on the bank statement with those on th Outstanding checks 3. Prepare a bank reconciliation for August. ALLISON COMPANY Bank Reconciliation, August 31, Current Year Company's Books Bank Statement Ending balance per cash account Ending balance per bank statement Additions: Additions: Deductions: Deductions: Correct cash balance Correct cash balance 4. Prepare journal entries that the company should make as a result of the bank reconciliation (if no entry is required for a transactionlevent, select "No journal entry required" in the first account field.) View transaction list 1 Record the entry for deposits during August 2 Record the entry for checks cleared during August. 3 Record entry for Interest collected 4 Record entry for service charges deducted from bank balance Note : journal entry has been entered Record entry Clear entry View general al Journal entry worksheet 2 3 4 Record the entry for deposits during August. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet Record the entry for checks cleared during August. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet