Cayemberg Company maintains a checking account at the Commerce Bank. At July 31, selected data from the ledger balance and the bank statement are shown below.

Cash in Bank Per Books Per Bank Balance, July 1 $17,600 $16,800 July receipts 81,400 July credits 82,470 July disbursements 77,150 July debits 74,756 Balance, July 31 $21,850 $24,514 Analysis of the bank data reveals that the credits consist of $81,000 of July deposits and a credit memorandum of $1,470 for the collection of a $1,400 note plus interest revenue of

$70. The July debits per bank consist of checks cleared $74,700 and a debit memorandum of $56 for printing additional company checks.

You also discover the following errors involving July checks: (1) A check for $230 toa creditor on account that cleared the bank in July was journalized and posted as $320.

(2) A salary check to an employee for $255 was recorded by the bank for $155.

The June 30 bank reconciliation contained only two reconciling items: deposits in transit $7,000 and outstanding checks of $6,200.

Instructions

(a) Prepare a bank reconciliation at July 31, 2014.

(b) Journalize the adjusting entries to be made by Cayemberg Company. Assume that interest on the note has not been accrued.