Analysis of the bank data reveals that the credits consist of $79,000 of Julydeposits and a credit memorandum of $3,470 for the collection of a $3,400note plus interest revenue of $70. The July debits per bank consist ofchecks cleared $74,700 and a debit memorandum of $56 for printeradditional company checks.You also discover the following errors involving July checks: (1)A check for $230 to a creditor on account that cleared the bank in July wasjournalized and posted as $320. (2) A salary check to an employee for$255 was recorde3d by the bank for $155.The June 30 bank reconciliation contained only two reconcilingitems: deposits in transit $7,000 and outstanding checks for $6,200.

Instructions

(a)Prepare a bank reconciliation at July 31.(b)Journalize the adjusting entries to be made by Haverman Company atJuly 31. Assume that interest on the note has not been accrued.

Problem # 8 Prepare a bank reconciliation and adjusting entries. (SO 7) P8-5A Haverman 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. Balance, July 1 July receipts July credits July disbursements July debits Balance, July 31 Cash in Bank Per Books Per Bank $17,600 $16,800 81,400 82,470 77,150 _______ 74,756 $21,850 $24,514 Analysis of the bank data reveals that the credits consist of $79,000 of July deposits and a credit memorandum of $3,470 for the collection of a $3,400 note plus interest revenue of $70. The July debits per bank consist of checks cleared $74,700 and a debit memorandum of $56 for printer additional company checks. You also discover the following errors involving July checks: (1) A check for $230 to a 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 recorde3d by the bank for $155. The June 30 bank reconciliation contained only two reconciling items: deposits in transit $7,000 and outstanding checks for $6,200. (a) Adjusted balance per books $25,354 Instructions (a) Prepare a bank reconciliation at July 31. (b) Journalize the adjusting entries to be made by Haverman Company at July 31. Assume that interest on the note has not been accrued. 1