• 2. The cash account for Inky’s Bike Co. at July 1, 2010, indicated a balance of $12,470. During July, the total cash deposited was $26,680, and checks written totaled $31,500. The bank statement indicated a balance of $16,750 on July 31. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items: a) Checks outstanding totaled $12,850. b) A deposit of $5,100, representing receipts of July 31, had been made too late to appear on the bank statement. c) The bank had collected for Inky’s Bike Co. $2,675 on a note left for collection. The face of the note was $2,500. d) A check for $370 returned with the statement had been incorrectly charged by the bank as $730. e) A check for $320 returned with the statement had been recorded by Inky’s Bike Co. as $230. The check was for the payment of an obligation to Ranchwood Co. on account. f) Bank service charges for July amounted to $25. g) A check for $850 from Hallock Co. was returned by the bank because of insufficient funds. Instructions 1) Prepare a bank reconciliation as of July 31. 2) Journalize the necessary entries.