Bank Reconciliation

On July $31,$ Arthur Company$$s Cash in Bank account had a balance of $$8,112\mathrm{.}62.$

On that date, the bank statement indicated a balance of $$10,170\mathrm{.}62.$

A comparison of returned checks and bank advices revealed the following:

Deposits in transit July $31$ amounted to $$3,316\mathrm{.}12.$

Outstanding checks July $31$ totaled $$1,251\mathrm{.}12.$

The bank erroneously charged a $$215\mathrm{.}00$ check of Solomon Company against the Arthur bank account.

A $$15$ bank service charge has not yet been recorded by Arthur Company.

Arthur neglected to record $$4,000\mathrm{.}00$ borrowed from the bank on a ten percent six$-$month note. The bank statement shows the $$4,000\mathrm{.}00$ as a deposit.

Included with the returned checks is a memo indicating that J$.$ Martin$$s check for $$610\mathrm{.}00$ had been returned NSF$.$ Martin, a customer, had sent the check to pay an account of $$660\mathrm{.}00$ less a $$50$ discount.

Arthur Company recorded a $$107\mathrm{.}00$ payment for repairs as $$1,070\mathrm{.}00.$

Required

a$.$ Prepare a bank reconciliation for Arthur Company at July $31.$

b$.$ Prepare the journal entry $($or entries$)$ necessary to bring the Cash in Bank account into agreement with the reconciled cash balance on the bank reconciliation.

Note: Do not round answers $-$ enter using two decimal places, when needed.

Bank reconciliation

Journal entries

ARTHUR COMPANY

Bank Reconciliation

July $31$

Balance from general ledger

Add: Add:

Add: Bank error$-$ Solomon Company check

charged against Arthur Company's account

Less: Less:

Less: NSF Check