Shortly after July 31, Towanda Corporation received a bank statement containing the following information:

December cash transactions and balances on Towanda's records are shown in the following T-account:

Required:
1. Prepare a bank reconciliation for July.
2. Prepare the adjusting entries made by Towanda Corporation as a result of this reconciliation process.
3. What amount is reported as cash on the balance sheet at July31?

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Checks Deposits 6/30 Beg balance $ 300 4,500 $270 150 $330 1,400 10,000 1,500 1,600 2,700 3,500 2 Bank service charge Cash Balance, 6/30 $5,550 Amount Check DepositedNumber Amount Number Amount $ 25 100 500 2,700 1,600 Check Check Check Date $ 300 4,500 10,000 3,500 950 $19,250 $ 270 150 330 25 7,025 150 450 1,400 1,500 325 176 7/5 7/15 7/29 7130 Total deposits 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 75 425 550 650 275 Total disbursements $18.525 Balance, 7/31 5 6,275