Bank Reconciliation Assignment The bank statement for Farmer Co. indicates a balance of $7,735 on June 30. After the journals for June were posted, the cash account had a balance of $4,098. Prepare a bank reconciliation on the basis of the following reconciling items: (1)Cash sales of $742 were erroneously recorded in the cash receipts journal as $724. (2)Deposits in transit not recorded by bank, $425. (3)Bank debit memo for service charges, $35. (4)Bank credit memo for note collected by bank, $2,475 including $75 interest. (5)Bank debit memo for $256 NSF (not sufficient funds) check from Janice Smith, a customer. (6)Checks outstanding, $1,860. Prepare a bank reconciliation as of June 30. Journalize the necessary entries. Farmer Co. Bank Reconciliation June 30 Cash Balance According to bank statement Add Deposit in transit not recorded by bank Deduct Outstanding Checks Adjusted Balance Cash Balance according to company's records Add note collected by bank, including $75 interest Error in recording cash sales of $742 and $724 Deduct NSF from Janice Smith Bank Service Charges Adjusted Balance $7.735.00 $425.00 $8,160.00 $1,860.00 $6,300.00 $4,098.00 $2,475.00 18 $2,493.00 $6.591.00 $256.00 $35.00 $291.00 $6,300.00 Journal Post. Date Description Ref. Debit Credit