xercise $5-12($Algo$)$ Bank reconciliation adjustment LO $5-3$

Refer to the information given below:

The August $31$ balance shown on the bank statement is $$9,090.$

There is a deposit in transit of $$1,250$ at August $31.$

Outstanding checks at August $31$ totaled $$1,570.$

Interest credited to the account during August but not recorded on the company's books amounted to $$58.$

A bank charge of $$46$ for checks was made to the account during August. Although the company was expecting a charge, the amount was not known until the bank statement arrived.

In the process of reviewing the canceled checks, it was determined that a check issued to a supplier in payment of accounts payable of $$150$ had been recorded as a disbursement of $$432.$

The August $31$ balance in the general ledger Cash account, before reconciliation, is $$8,476.$

Required:

Show the reconciling items in a horizontal model that should be prepared to reflect the reconciling items as on August $31.$

Prepare the adjusting journal entry that should be prepared to reflect the reconciling items.

What is the amount of cash to be included in the August $31$ balance sheet for the bank account reconciled?

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