07 5 Kesler Co. deposits all receipts intact on the day received and makes all payments by cheque. On July 31, 2020, after all posting was completed, its Cash account showed a $10,921 debit balance. However, Kesler's July 31 bank statement showed only $10,085 on deposit in the bank on that day along with the following information 01:28:44 a. Outstanding cheques, $2,759. b. Included with the July cancelled cheques returned by the bank was a $16 debit memo for bank services. c. Cheque #919, returned with the cancelled cheques, was correctly drawn for $345 in payment of the utility bill and was paid by the bank on July 15. However, it had been recorded with a debit to Utilities Expense and a credit to Cash as though it were for $435. d. The July 31 cash receipts, $3.669, were placed in the bank's night depository after banking hours on that date and were unrecorded by the bank at the time the July bank statement was prepared. Required: a. Prepare a bank reconciliation for Kesler Co. at July 31. KESLER CO. Bank Reconciliation July 31, 2020 Company's Books Book balance of cash Bank Statement Bank statement balance Add: Add: Deduct: Deduct: Adjusted bank balance Adjusted book balance 5 b. Give the journal entries that Kesler Co. should make as a result of having prepared the bank reconciliation in part (a). 01:28:36 View transaction list Journal entry worksheet 1 2 Record to correct utilities error. Note Enter debits before credits Date General Journal Debit Credit Jul 31 Record entry Clear entry View general journal Record entry Clear entry View general journal Analysis Component Identify whether profil assets, liabilities, and equity would be over- or understated if the journal entries in part (b) were not recorded. (if there is no effect on any of the elements, select "No effect") Profit Assets Liabilities Equity