Exercise 7-18 Bank reconciliation LO6 Kesler Co. deposits all receipts intact on the day received and makes all payments by cheque. On July 31, 2023, after all posting was completed, its Cash account showed a $10,913 debit balance. However, Kesler's July 31 bank statement showed only $10,052 on deposit in the bank on that day along with the following information. a. Outstanding cheques, $2,750. b. Included with the July cancelled cheques returned by the bank was a $24 debit memo for bank services. c. Cheque #919, returned with the cancelled cheques, was correctly drawn for $896 in payment of the utility bill and was paid by the bank on July 15. However, it had been recorded with a debit to Utilities Expense and a credit to Cash as though it were for $986. d. The July 31 cash receipts, $3,677, were placed in the bank's night depository after banking hours on that date and were unrecorded by the bank at the time the July bank statement was prepared. Required: a. Prepare a bank reconciliation for Kesler Co. at July 31. Bank Statement Bank statement balance KESLER CO. Bank Reconciliation July 31, 2023 Company's Books Book balance of cash Required: a. Prepare a bank reconciliation for Kesler Co. at July 31. Bank Statement Bank statement balance Add: Deduct: Adjusted bank balance KESLER CO. Bank Reconciliation July 31, 2023 $ 0 Company's Books Book balance of cash Add: Deduct: Adjusted book balance 0 b. Give the journal entries that Kesler Co. should make as a result of having prepared the bank reconciliation in part (a). View transaction list Journal entry worksheet < 1 2 Record to correct utilities error. Note: Enter debits before credits. Date Jul 31 General Journal Debit Credit b. Give the journal entries that Kesler Co. should make as a result of having prepared the bank reconciliation in part (a). View transaction list Journal entry worksheet < 1 2 Record bank service charges. Note: Enter debits before credits. Date Jul 31 h 13 General Journal Debit Credit Analysis Component: Identify whether profit, assets, liabilities, and equity would be over- or understated if the journal entries in part (b) were not recorded. (If there is no effect on any of the elements, select "No effect".) Profit Assets Liabilities Equity