The bank portion of the bank reconciliation for Katsaris Company at August 31, 2014, was as follows:

The adjusted cash balance per bank agreed with the cash balance per books at August 31. The September bank statement showed the following:

Additional information:
1. The deposit of $3,145 on September 15 is an electronic transfer from a customer in payment of its account. The amount includes $65 of interest, which Katsaris Company had not previously accrued.
2. The NSF for $1,027 is for a $1,015 cheque from a customer, Hopper Holdings, in payment of its account, plus a $12 processing fee.
3. SC represents bank service charges for the month.
The bank made one error: it recorded cheque #4475 incorrectly. Any other errors were made by Katsaris Company. The cash records per the company's books for September showed the following:

Instructions
(a) Determine the unadjusted cash balance per books as at September 30 before reconciliation.
(b) Prepare a bank reconciliation at September 30.
(c) Prepare the necessary adjusting entries at September 30. (The correction of any errors in the recording of cheques should be made to Accounts Payable. The correction of any errors in the recording of cash receipts should be made to Accounts Receivable.)
Taking It Further
The company will prepare entries to record items found in the above bank reconciliation (see part [c] in the instructions). Describe any other follow-up actions required regarding the other reconciling items in Katsaris Company's bank reconciliation?

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KATSARIS COMPANY Bank Reconciliation August 31, 2014 Cash balance per bank Add: Deposits in transit $13,229 2,350 15,579 Less: Outstanding cheques #4451 #4460 #4461 #4462 #4464 $1,740 549 723 1,840 5,472 Adjusted cash balance per bank $10,107 5781 77805 46 42 7 7 5376 47 3213 9855 2 5748125 13145 152 4 7 N4444 e-1 12578956 20 23 26 27 2 Cash Payments Cash Receipts Date Number Amount Number Amount 1,439 553 1,280 $15,076 Date Date Amount Sept.4465 $1,459Sept. 23 4474 4475 4476 2 Sept. 21,212 2,365 2,763 1,967 3,126 1,940 1,070 754 Tota$15,197 1,180 4467 15 554 Total 26 12 17 4470 4471 4472 4473 3,400 621 488 1,234