The unadjusted cash account balance for Few Company at December 31, 2012 is $21,380. The bank statement showed an ending balance of $27,388 on that date. The following information is available:

bank service charge $29 outstanding checks $7,700 NSF check from customer $540 Deposit in transit $1321

Check #433 for the purchase of inventory was written correctly and paid by the bank correctly for $234, but was recorded on the books at $432. Few uses the perpetual inventory system.

Required:

Prepare a bank reconciliation as of December 31, 2012. Also, show which transactions will require adjustments to the cash account on the books and what accounts those transactions will affect.