The following information pertains to Lance Company.
1. Cash balance per bank, July 31, $7,263.

2. July bank service charge not recorded by the depositor $28.

3. Cash balance per books, July 31, $7,284.

4. Deposits in transit, July 31, $1,300.

5. The bank collected $716 in July for Lance through electronic funds transfer. The collection has not been recorded by Lance.

6. Outstanding checks, July 31, $591.

Instructions

a. Prepare a bank reconciliation at July 31.
b. Journalize the adjusting entries at July 31 on the books of Lance Company.