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3 ALT Aa EE. A. - A - l el Emphasis T Heading 1 1 Heading 2 1 Heading x x Font Paragraph fs Styles Question 3 (25 min, 25 points) The cash transactions and cash balances of Banner, Inc. for July were as follows: 1. The ledger account for Cash showed a balance at July 31 of $125,568. 2 The July bank statement showed a closing balance of $114,828. 3. The cash received on July 31 amounted to $16,000. It was deposited at the ATM counter at night after banking hours on July 31 and therefore was not recorded by the bank on the July statement 4 Also included with the July bank statement was a debit memorandum from the bank for $50 representing service charges for July 5. A credit memorandum enclosed with the July bank statement indicated that a non-interest bearing note receivable for $4,000 from Rene Manes deposited at the bank for collection had been collected and recorded in the account of Banner, Inc. by the bank 6. Upon receipt of the bank statement, it was revealed that Check no.821 for $519, issued July 15 in payment for office equipment, had been erroneously entered in Banner's records as $915. 7. It was also revealed that three checks all issued in July, had not yet been paid by the bank: no. 811 for $314; no. 814 for $625, no.823 for $175. 8 Included with the July bank statement was a $200 check drawn by Howard Williams a customer of Banner, Inc. This check was marked "NSF". It had been included in the deposit of July 27, but had been charged back against the company's account on July 31. Instructions 1. Prepare a bank reconciliation for Banner, Inc. at July 31. 2. Prepare the necessary joumal entries to update the accounting records as of July 31

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