Tiny Corp. prepares monthly bank reconciliations of its checking account balance. The bank statement for October 2009 indicated the following:

Balance, October 31, 2009 ................$7,920

Service charge for October ................ 20

Interest earned during October ............. 30

NSF check from Green Corp. (deposited by Tiny) ...... 32

Note ($1,000) and interest ($40) collected for Tiny

from a customer ................... 1,040

An analysis of canceled checks and deposits and the records of Tiny revealed the following items:

Checking account balance per Tiny’s books ......... $7,170

Outstanding checks as of October ............ 31 952

Deposit in transit at October 31 ............. 1,310

Error in recording a check issued by Tiny. (Correct amount

of the check is $450, but was recorded as a cash disbursement

of $540. The check was issued to pay for merchandise

originally purchased on account.) ............. 90

Required:

1. Prepare a bank reconciliation at October 31, 2009, in proper form.

2. Record any necessary adjusting journal entries.