Bank Reconciliation On July 31, Sullivan Companys Cash in Bank account had a balance of $8,112.62. On that date, the bank statement indicated a balance of $9,098.55. A comparison of returned checks and bank advices revealed the following:

1. Deposits in transit July 31 amounted to $3,358.19.
2. Outstanding checks July 31 totaled $1,251.12.
3. The bank erroneously charged a $215.00 check of Solomon Company against the Sullivan bank account.
4. A $15 bank service charge has not yet been recorded by Sullivan Company.
5. Sullivan neglected to record $3,000.00 borrowed from the bank on a ten percent six-month note. The bank statement shows the $3,000.00 as a deposit.
6. Included with the returned checks is a memo indicating that J. Martins check for $640.00 had been returned NSF. Martin, a customer, had sent the check to pay an account of $660.00 less a $20 discount.
7. Sullivan Company recorded a $107.00 payment for repairs as $1,070.00

Required

a. Prepare a bank reconciliation for Sullivan 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

SULLIVAN COMPANY Bank Reconciliation July 31
AnswerDeposits not credited by bankEnding balance from bank statementOutstanding checksProceeds of noteService chargeReconciled cash balance	Answer		Balance from general ledger		Answer
Add:	AnswerDeposits not credited by bankEnding balance from bank statementOutstanding checksProceeds of noteService chargeReconciled cash balance	Answer		Add:	AnswerDeposits not credited by bankEnding balance from bank statementOutstanding checksProceeds of noteService chargeReconciled cash balance		Answer
Add:	Bank error- Solomon Company check				Answer
	charged against Sullivan Company's account	Answer			Answer		Answer
		Answer					Answer
Less:	AnswerDeposits not credited by bankEnding balance from bank statementOutstanding checksProceeds of noteService chargeReconciled cash balance	Answer		Less:	AnswerDeposits not credited by bankEnding balance from bank statementOutstanding checksProceeds of noteService chargeReconciled cash balance		Answer
				Less:	NSF Check		Answer
AnswerDeposits not credited by bankEnding balance from bank statementOutstanding checksProceeds of noteService chargeReconciled cash balance	Answer		AnswerDeposits not credited by bankEnding balance from bank statementOutstanding checksProceeds of noteService chargeReconciled cash balance		Answer

Please answer all parts of the question.

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