Your assistant prepared the following bank reconciliation statement. It appears that the statement is unacceptable and the task of preparing a proper reconciliation falls upon you.

Brandon Company
Bank Reconciliation
May 31, 2017
Balance per books May 31			$9,585
Add:
Electronic Fund Transfer	$1,111
Deposit in transit	2,506		3,617
			$13,202
Deduct:
Bank charges	$27
NSF cheque, Rhonda Teal	534
Outstanding cheques	1,851
Error in cheque #78: correctly issued and processed by the bank for $796, but incorrectly recorded in the books as $743 (Accounts PayableDelta Co.)	53		2,465
Indicated bank balance			$10,737
Balance per bank statement			9,427
Discrepancy			$1,310

Required: 1. Prepare a proper bank reconciliation showing the true Cash balance.

BRANDON COMPANY Bank Reconciliation May 31, 2017

Company's Books Bank Statement Balance per books Balance per bank Add Add Deduct Deduct

• 1

  Record to collection of EFT.

• 2

  Record to error, bank service charges, and NSF cheque.

2. Prepare the necessary journal entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)