E7.8 (LO 3), AP The following information pertains to Ranchero Company. 1. Cash balance per books, August 31, $7,364. 2. Cash balance per bank, August 31, $7,328. 3. Outstanding checks, August 31, $686. 4. August bank service charge not recorded by the depositor $38. 5. Deposits in transit, August 31, $2,700. In addition, $2,016 was collected for Ranchero Company in August by the bank through electronic funds transfer. The collection has not been recorded by Ranchero Company. Instructions a. Prepare a bank reconciliation at August 31, 2022. b. Journalize the adjusting entries at August 31 on the books of Ranchero Company