1. The bank statement dated September 30, 20x1, for the Smith Company showed a balance of $2,876.35 which differs from the $1,879.50 book balance of cash on that date. In attempting to reconcile the differences, that accountant noted the following facts:

1. The bank recorded a service fee of $15 that was not recorded on the books of smith company.
2. A deposit of $500 was made on the last day of the month but was not recorded by the bank
3. A check for $176 had been recorded on the Smith company book as $167. The bank paid the correction
4. A check was written during September but has not been processed by the bank. The amount was $422.85
5. A check of $1,000 is still outstanding from August
6. A check for $100 deposited by Smith Company was returned marked Not Sufficient Funds
7. A credit memorandum stated that the bank collected a note receivable of $200 for Smith Company and charged Smith a $2 collection fee. Smith company had not previously recorded the collection.

Required:

- Prepare, in good form, a bank reconciliation that shows the correct cash on September 30, 201x1