Exercise 7-10Preparation of bank reconciliation L06 CHECK FIGURE: 1. Adjusted book balance = $11,203 I The bank reconciliation prepared by Winfield Construction on June 30, 2017 appeared as follows: Winfield Construction Bank Reconciliation June 30, 2017 3.9.200 Book Lalance 59.770 Bank statement balance Add: Deposit of June 30 in transit 1 350 $10.550 Deduct: Outstanding cheque #14 Adjusted lank balance 780 $ 9.770 Adjusted book balance $9.770 The Cash account in the general ledger appeared as follows on July 31 Cash Acct. No. 101 Explanation PR Debit Credit Bamce 2017 June 30 Balance 4.770 July 31 CR3 5.040 14.810 31 CD6 3.142 11,668 Depota Made Che Wilton July 8 $1.280 1.675 1.445 640 $5.040 No.52 53 54 51.796 961 382 24 31 Total July Cash Receipts Total July Cash Disbursements $3.142 Focus The following bank statement is available for July Bank Statement To: Winfield Construction July 31, 2017 Bank of Montreal Cheques/Charges Deposits/Credits Balance NSE #52 07/02 07/08 07/11 465 1,796 10.085 9,569 10 824 12.269 #96 07/02 1,350 07/08 1.280 07/11 1.675 07/24 1.445 07/31 PMT = Principal Payment 420 382 NSE 07/31 Not Sufficient Funds INTE Interest SC Service Charge Page 301 In reviewing cheques returned by the bank, the bookkeeper noted that cheque #96 written by Winburn Construction in the amount of $420 was charged against Winfield's account in error by the bank. The NSF cheque was regarding a customer account, Jim Anderson Required 1. Prepare a bank reconciliation at July 31 2. Prepare the necessary journal entries to bring the general ledger Cash account into agreement with the adjusted balance on the bank reconciliation Analysis Component: If the journal entries in Part 2 were not recorded what financial statement elements (profit, assets, liabilities, and equity) would be over or understated