The following information pertains to Ranchero Company.
1. Cash balance per books, August 31, $7,364.
2. Cash balance per bank, August 31, $7,328.
3. Outstanding checks, August 31, $686.
4. August bank service charge not recorded by the depositor $38.
5. Deposits in transit, August 31, $2,700. In addition, $2,016 was collected for Ranchero Company in August by the bank through electronic funds transfer. The collection has not been recorded by Ranchero Company.

Instructions
a. Prepare a bank reconciliation at August 31, 2025.
b. Journalize the adjusting entries at August 31 on the books of Ranchero Company.