Preparing a bank reconciliation statement and journalizing entries to adjust the cash balance. On August 31, 2019, the balance in the checkbook and the Cash account of the Dry Breakfast was $12,981. The balance shown on the bank statement on the same dale Cash account of the Dry Creek Bed and n the same date was $13,897. Notes a. The firm's records indicate that a $1,500 deposit dated August 30 and a $701 deposit dat August 31 do not appear on the bank statement. b. A service charge of $8 and a debit memorandum of $270 covering an NSF check have not y been entered in the firm's records. (The check was issued by Art Corts, a credit customer c. The following checks were issued but have not yet been paid by the bank: Check 712, $110 Check 713, $125 Check 716, $238 Check 736, $577 Check 739, $78 Check 741, $120 Cash CHAPTER 109 d. A credit memorandum shows that the bank collected a $2,094 note receivable and interest of 553 for the firm. These amounts have not yet been entered in the firm's records INSTRUCTIONS 1. Prepare a bank reconciliation statement for the firm as of August 31 4. Record general journal entries for items on the bank reconciliation statement that must be journalized. Date the entries August 31, 2019. Analyze: What effect did the journal entries recorded as a result of the bank reconciliation have on the fundamental accounting equation? Problem 9.5A Objectives 9-5,9-6 Correcting errors revealed by a bank reconciliation During the bank reconciliation process at A. Fontes Consultancy on May 2, 2019, the following two errors were discovered in the firm's records. a. The checkbook and the general journal indicated that Check 2206 dated April 17 was issued for $695 to make a cash purchase or supplies. However, examination of the canceled check and the listing on the bank statement showed that the actual amount of the check was $14. b. The checkbook and the general journal indicated that Check 2247 dated April 20 was issued for $130 to pay a utility bill. However, examination of the canceled check and the listing on the bank statement showed that the actual amount of the check was $164. INSTRUCTIONS 1. Prepare the adjusted book balance section of the firm's bank reconciliation statement. The book balance as of April 30 was $20,275. The errors listed above are the only two items that affect the book balance. 2. Prepare general journal entries to correct the errors. Use page Il and date the entries April 30. 2019. Check 2206 was correctly debited to Supplies on April 17 and Check 2247 was debited to Utilities Expense on April 20. Analyze: If the errors described had not been corrected, would net income for the period be over stated or understated? By what amount