Bernard Company keeps all cash in a checking account. An examination of the company’s accounting records and bank statement for the month ended July 31, 2008 revealed a bank statement balance of P580,000 and book balance of P455,000. The following information were gathered in the course of reconciling the balances. 

A .A deposit of P51,000 does not appear on the bank statement. Check outstanding on July 31, 2008 amount to P170,000. 

B .P157,000 deposit of Bener Company erroneously credited by bank to Bernard. 

C .P102,000 August check of Bener erroneously charged by bank to Bernard. 

D. July collection of P16,000 was recorded by the company as P160,000. 

E. August check in payment of accounts payable for P11,000 recorded by the company as P110,000. 

F. Included with the July 31 bank statement was an NSF check for P40,000 that Bernard had received from Eman. The bank statement shows a P15,000 service charge for July. 

G. Note collected by the bank during July for the company amount to P51,000, not yet taken up in company’s books. Required: 

1.Prepare a bank reconciliation for the month of July 31, 2008. 

2.How much is the adjusted cash balance?_________________ 

3.Prepare the adjusting journal entries.