E$7\mathrm{.}11$ Prepare bank reconciliation and adjusting entries.

The following information pertains to Lance Company.

$1.$ Cash balance per bank, July $31,$ $$8,732.$

$2.$ July bank service charge not recorded by the depositor $$45.$

$3.$ Cash balance per books, July $31,$ $$8,768.$

$4.$ Deposits in transit, July $31,$ $$3,500.$

$5.$ $$2,023$ collected from a customers for Lance Company in July by the bank through electronic funds transfer. The collection has not been recorded by Lance Company.

$6.$ Outstanding checks, July $31,$ $$1,486.$

Instructions

a$.$ Prepare a bank reconciliation at July $31,2025.$

b$.$ Journalize the adjusting entries at July $31$ on the books of Lance Company.

NOTE: Enter a formula, a cell reference, or a value $($if you are unable to reference a cell$),$ into the yellow shaded input cells.

a$.$ LANCE COMPANY

Bank Reconciliation

July $31,2025$

b$.$ July $31$

July $31$