Your senior accountant instructed you to prepare a four-column proof of cash receipts and disbursements for the month of August 2014. The bank reconciliation prepared by FAILNOT Company at July 31 is reproduced below (all book adjustments were recorded in August): bank book Balance 52,000 40,000 Deposits in transit, July 31 900 Outstanding checks: 200 436 1,800 450 1,400 451 600 454 Proceeds of Note receivable collected by bank in July 8,000 Deposits made in bank on July 31 not recorded in books until August 1,000 Bank service charge 100 `Adjusted balance Upon inquiry about the clients August 31 bank reconciliation, you were informed that it has been lost and that the client is too busy at this time to prepare another. Your senior auditor told you to get the August bank statement and paid checks and to prepare the August 31 reconciliation so that you may complete the August proof of cash. The august bank statement is reproduced below: Bank of Judah Account Name: FAILNOT Company Date Checks Ref Deposits 31-Jul 1-Aug Php1,800 Php 900 6-Aug 1,400 10,000 9-Aug 600 12-Aug 140 DM 140 15-Aug 1,000 14,000 20-Aug 700 27-Aug 1,440 100 29-Aug 100 EC 31-Aug 440 SC 31-Aug 300 DM 31-Aug 1,820 SV Service charge; DM Debit Memo; EC error corrected; CM credit memo. The checks paid accompanying this bank statement (all clearing in August) were (checks listed in order of payment by bank). No. 450, P1,800; No. 451, P1,400; No. 454, P600; No. 455, P1,000; No. 456, P700; No. 458, P1,440; and No. 459, P1,820. The check register revealed that the last check issued in August was No. 460 for P1,000 and that check No. 457 was for P2,400. Cash received for the period of August 21 through 31 of P9,400 was deposited in the bank on September 1. The debit memo on August 12 and August 31 were customer NSF checks returned by the bank. The check on August 12 was immediately redeposited without entry. The check returned on August 31 was redeposited by the client in the bank on September 1 without entry. Required: Prepare Proof of Cash & Proposed adjusting entries for the given problem