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The balance in Happ, Inc.'s general ledger Cash account was $12,430 at September 30, before reconciliation. The September 30 balance shown in the bank statement was $11,130. Reconciling items included deposits in transit, $1,200; bank service charges, $70; NSF check written by a customer and returned with the bank statement, $450; outstanding checks, $380; and interest credited to the account during September but not recorded on the company's books, $40.
Required:
a. Show the reconciling items in a horizontal model that should be prepared to reflect the reconciling items for Happ, Inc., at September 30.
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