Bank Reconciliation On July 31, Arthur Company's Cash in Bank account had a balance of $8,112.62. On that date, the bank statement indicated a balance of $10,170.62 A comparison of returned checks and bank advices revealed the following: 1. Deposits in transit July 31 amounted to $3,316.12. 2. Outstanding checks July 31 totaled $1,251.12. 3. The bank erroneously charged a $215.00 check of Solomon Company against the Arthur bank account. 4. A $15 bank service charge has not yet been recorded by Arthur Company. 5. Arthur neglected to record $4,000.00 borrowed from the bank on a ten percent six-month note. The bank statement shows the $4,000.00 as a deposit. 6. Included with the returned checks is a memo indicating that ), Martin's check for $610.00 had been returned NSF. Martin, a customer, had sent the check to pay an account of $660.00 less a $50 discount. 7. Arthur Company recorded a $107.00 payment for repairs as $1,070.00 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. ARTHUR COMPANY Bank Reconciliation July 31 Balance from general ledger Add: Add: Add: Bank error-Solomon Company check Check charged against Arthur Company's account record $ Less Less: Less: NSF Check GENERAL JOURNAL Description Date Debit Credit July 31 To record proceeds of note. To correct recording of check. To record service charge. 31 Cash in Bank To reclassify NSF check as an account receivable