$1-14.$ The following data on the cash transactions and bank accounts of Pound Company for July $2022$ are as follows:

Cash balince per accounting records, July $31,2022,P17,194.$

Cash balance per bank statement, July $31,2022,P31,848.$

Bank scrvice charge for July, P$109.$

Debit memo for printed checks deliverced by the bank; the charge has not heen recorded in the accounting records, P$225.$

Outstanding checks, July $31,2022,$ P$6,728.$

Deposit of July $31$ not recorded by the bank until August $1,$ P$4,880$

Proceeds of a bank loan on July $31$ not recorded in the accounting records, net of $P300$ intereat, P$5,700.$

Proceds trom the customer's promissory note, principal amount, P$8,000,$ collected by the bank, not taken up in the books, with P$100$ interest, $8,100.$

Check #$1210$ payable to a supplier entered in the accounting records as P$2,100$ deducted in the bank statement the erroneous amount of $P1,200.$

Stolen check lacking an authorized signature deducted from Pound's account by the bank in error, P$800.$

Customer's check retumed by the bank marked DAIF, indicating that the customer's balance was not adequate to cover the check. No entry has been made in the accounting records to record the returned check, P$760.$

REQU$/$RED:

$($a$)$ What is the correct cash balance as of Juity $31,2022?$ To answer this question, prepare bank reconcitiation staternent.

$($b$)$ Prepare the necessary adjusting entries on July $31,2022.$