The following information pertains to Terry's Pest Control Company (TPCC) for July:
1. The unadjusted bank balance at July 31 was $870.
2. The bank statement included the following items:
(a) A $60 credit memo for interest earned by TPCC.
(b) A $200 NSF check made payable to TPCC.
(c) A $110 debit memo for bank service charges.
3. The unadjusted book balance at July 31 was $1,400.
4. A comparison of the bank statement with company accounting records disclosed the following:
(a) A $400 deposit in transit at July 31.
(b) Outstanding checks totaling $120 at the end of the month.
Required
Prepare a bank reconciliation.