Haverman Co, maintains a checking account at the G. Bank. At July 31, selected data from balance and bank statement are shown below:

Per Books:

Balance July 1 : 17,600

July Receipts 81,400

July disbursements 77,150

Balance : 21,850

Per Bank:

Balance July 1 : 16,800

July Credits 82,470

July Debits 74,756

Balance : 24,514

Analysis of the bank data reveals that the credits consist of $81,000 of July deposits and a credit memo of $1470 for the collection of a $1400 note plus interest revenue of $70. The July debits per bank consist of checks cleared $74,700 and a debit memo of $56 for printing additional company checks.

You also discover the following errors involving july checks: (1) a check for $230 to a creditor on account that cleared the bank in July was journalized and posted as $320. (2) A salary check to an employee for $255 was recorded by the bank for $155.

The june 30 bank reconciliation contained only 2 reconciling items: deposit in transit $7000 and outstanding checks of $6200.

Instructions: Prepare bank reconciliation and journalize adjusting entries

Bank Reconciliation

July 31, 2014

Cash Balance per Bank Statement - $24,514

Add: Deposit in Transit - 7,400

(24,514 + 7,400) = $31,914

Less: Outstanding Checks

( After this I'm pretty much confused.)