General Ledger Bank Statement (000) (000) Beginning Balance 7/1/24 $ 4,611 $ 5,753 Deposits $25,056 Cash receipts journal $25,456 Checks cleared ($23,615) Cash disbursements journal ($21,811) July bank service charge ($87) Note due to bank paid ($6,100) Nonsufficient check fee ($311) Ending balance 7/31/2024 $8,256 $696 From the June 30, 2024, Bank Reconciliation Information in General Ledger and Bank Statement Balance per bank $5,753 Deposits in transit $600 Outstanding checks $1,742 Balance per books $4,611 Additional Information: 1. Checks that were outstanding on June 30 totaling $1,692, cleared the bank in July. a. Checks that cleared in July ($20,467 + $1,692) = $22,159 2. Checks that were recorded in the July disbursements journal totaling $20,467, cleared the bank in July. a. 3. A check for $1,060 cleared the bank but had not been recorded by Pittsburgh in the cash disbursements journal in July. It was for an acquisition of inventory. Pittsburgh Supply uses the periodic inventory method. 4. A check for $396 was charged to Pittsburgh Supply by the bank but had been written on a different companys bank account. 5. Deposits in the bank statement included $600 from June and $24,456 from July. 6. The bank charged Pittsburgh Supplys account for a nonsufficient check totaling $311. Pittsburghs credit manager concluded that the customer intentionally closed its account, and the owner left the city. The check was turned over to a collection agency. 7. A note for $5,800, plus interest, was paid directly to the bank in July by Pittsburg under an agreement signed 4 months ago. The note payable was recorded at $5,800 on Pittsburg Supplys books. REQUIRED: a. Prepare a bank reconciliation. [2 hours] b. Prepare all proposed adjusting journal entries for Pittsburgh to use to update its Cash balance as of July 31, 2024. [20 minutes] c. Determine the cash balance that should appear on the July 31, 2024, financial statements of Pittsburgh Supply.