Jim Smith operates a roller skating center. He has just received the monthly bank statement at July 31 from Citizen National Bank, and the statement shows an ending balance of $ 735. Listed on the statement are an EFT rent collection of $ 305, a service charge of $ 7, two NSF checks totaling $ 125, and a $ 10 charge for printed checks. In reviewing his cash records, Smith identifies outstanding checks totaling $ 604 and a July 31 deposit in transit of $ 1 comma 775. During July, he recorded a $ 280 check for the salary of a part-time employee as $ 28. Smith's Cash account shows a July 31 balance of $ 1995.

JIm Smith operates a roller skating center. He has Just recelved the monthly bank statement at July 31 from Cltizen Natlonal Bank, and the statement shows an ending balance of $735. Listed on the statement are an EFT rent collection of $305, a service charge of $7, two NSF checks totalling $125, and a $10 charge for printed checks. In revlewing his cash records, Smith Identifies outstanding checks total ing $604 and a July 31 deposit in transt of $1,775. During July, he recorded a $280 check for the salary of a part-time employee as $28. Smith's Cash account shows a July 31 balance of $1,995 a July 31 deposit in translt of $1,775. During July, he (Click the icon to view the bank reconciliation ) Requirement 1. Use the bank reconciliation provided to make the journal entries that Smith should record on July 31 to update his Cash aocount. Include an explanation for each entry. (Record the transactions in the order they appear on the bank reconcllation. Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Journal Entry Date Accounts and Explanations Debit Credit July 31