The bank statement for Farmer Co. indicates a balance of $7,735 on June 30. After the journals for June were posted, the cash account had a balance of $4,098. Prepare a bank reconciliation on the basis of the following reconciling items:

1. Cash sales of $742 were erroneously recorded in the cash receipts journal as $724.
2. Deposits in transit not recorded by bank, $425.
3. Bank debit memo for service charges, $35.
4. Bank credit memo for note collected by bank, $2,475 including $75 interest.
5. Bank debit memo for $256 NSF (not sufficient funds) check from Janice Smith, a customer.
6. Checks outstanding, $1,860.

Farmer Co.
Bank Reconciliation
June 30
Cash balance according to bank statement		$
		$
Adjusted balance		$
Cash balance according to company's records		$
	$
		$
	$
Adjusted balance		$