The following information is needed to reconcile the cash balance for Fire Steel Inc.
- A deposit of $5,800 is in transit.
- Outstanding checks total $1,500.
- The book balance is $6,800 at February 28, 2013.
- The bookkeeper recorded a $1,740 check as $17,400 in payment of the current month's rent.
- The bank balance at February 28, 2013 was $18,000.
- A deposit of $400 was credited by the bank for $4,000.
- A customer's check for $3,700 was returned for nonsufficient funds.
- The bank service charge is $60.
Prepare the bank reconciliation and associated journal entries: