Bank Reconciliation (25 points)

Pensacola Bay Bank sent Ollie Industries its end-of-month bank statement for July.The end-of-month balance by the bank is $11,237.The statement shows that a deposit for $4,250 is in transit at the end of the statement period.The statement also revealed that checks for $87, $105, and $95 are outstanding.Pensacola Bay collected a $4,000 note receivable plus $120 of interest revenue.The bank charges $20 for the collection service.The bank charges a monthly account fee of $35.The end-of-month balance per company books is $11,135.

Required: I must prepare a bank reconciliation and write any necessary journal entries for the reconciliation.