P8-6B Betterdorf Company's bank statement from the National Bank at August 31, 2003, shows the following information: Balance, August 1 August deposits Cheques cleared in August Bank credit...

Extracted text: P8-6B Betterdorf Company's bank statement from the National Bank at August 31, 2003, shows the following information: Balance, August 1 August deposits Cheques cleared in August Bank credit memorandum: Collection of note receivable, $5,000 $17,400 72,000 69,660 plus $90 interest 5,090 Other interest earned 45 Bank debit memorandum: Safety deposit box rent Balance, August 31 25 24,850 A summary of the Cash account in the ledger for August shows the following: Balance, August 1, $16,900; cash receipts $77,000; cash disbursements $73,570. An analysis reveals that the only rec- onciling items on the July 31 bank reconciliation were a deposit in transit for $4,000 and outstand- ing cheques of $4,500. The deposit in transit was the first deposit recorded by the bank in August. In addition, you determine that there were two errors involving company cheques drawn in August: (1) A cheque for $400 to a creditor on account that cleared the bank in August was journalized and posted for $40. (2) A salary cheque for $275 to an employee was recorded by the bank for $572. Instructions (a) Determine the unadjusted Cash balance at August 31. (b) Prepare a bank reconciliation at August 31. (c) Journalize the correcting entries to be made by Betterdorf Company at August 31. Assume the interest on the note has been accrued by the company.