Everest Ltd's bank reconciliation clerk is trying to reconcile the bank balance at 31 July 2019. The balance of the Cash at Bank account, before any entries for transactions initiated by the bank, was $2,930 in the company records.

On 31 July 2019, Everest Ltd has following information.

1. The bank statement balance is $2,306.
2. The Cash at Bank account balance is $2,930
3. Unpresented cheques totalled $585.
4. Outstanding deposit $1,175.
5. The bank service charge is $25.
6. A cheque for $98 was paid for supplies. However, this transaction was recorded as a credit of $89 in the Cash at Bank accountand a debit of $89 in the supplies account.

Using the above information, answer the following questions.

Required

1. Prepare a correct bank reconciliation (5 marks)
2. Prepare the General Journal entries required by the reconciliation. Narrationsnotneeded (2 marks)
3. Post the above entries to the Cash at Bank General Ledger account (3 marks)