Entries for Bank Reconciliation

The following data were accumulated for use in reconciling the bank account of Mathers Co. for July:

1. Cash balance according to the company's records at July 31, $23,580.
2. Cash balance according to the bank statement at July 31, $24,920.
3. Checks outstanding, $4,790.
4. Deposit in transit, not recorded by bank, $3,840.
5. A check for $270 in payment of an account was erroneously recorded in the check register as $720.
6. Bank debit memo for service charges, $60.

Journalize the entries that should be made by the company, part (A) Error and part (B) Service Charge.

a. July 31	Cash
	Accounts Payable
b. July 31	Miscellaneous Expense
	Cash