Bank ReconciliationOn 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.

(SEE ATTACHED DOCUMENT)

QUESTION 3 Not complete Weight 55.00 V Flag question Bank Reconciliation On July 31, Sullivan Company's 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 transitJuly 31 amounted to $3,358.19. 2. Outstanding checksJuly 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]. Martin's 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 atJuly 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. { ||U| DU BE U D Balance from general ledger Add: Bank error Solomon Company check Check for 24:] charged against Sullivan Company's account [:] recorded as $:] Less: NSF Check $ :1 Ci :1 Ci :1 :1 Ci :1 :1 To record proceeds of note. To correct recording of check. To record service charge. Cash in Bank :1 C] C] C] :1 :1 Ci :1 :1 To reclassify NSF check as an account receivable. Certainty :QC=1 (Unsure: 67%)QC=3 (Quite sure: >80%)