Response to the following problem:
Painless Hospital's general ledger cash in bank account reports a balance of $346,920 as of October 31. An examination of the October bank statement in comparison with the cash records of the hospital, however, discloses the following information:
1. The October 31 balance per bank statement was $465,900.
2. A deposit in transit at October 31 was for $12,800.
3. Checks outstanding at October 31 totaled $89,300.
4. A patient's NSF $5,100 check was returned by the bank with the October statement.
5. Bank service charges for October were $120.
6. The bank inadvertently credited another of its depositors for Painless Hospital's October 26 bank deposit of $10,600.
7. Matured temporary investments of $50,000, plus interest of $2,000, were collected and credited by the bank to the hospital's checking account on October 29.
8. A hospital employee journalized a properly drawn check for $700 as $7,000 on October 11 in settlement of an account payable.
Required:
(1) Prepare a bank reconciliation at October 31 for Painless Hospital.
(2) Prepare the necessary adjusting entry at October 31.