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 $$10,889$ debit balance. However, Kesler$$s July $31$ bank statement showed only $$9,720$ on deposit in the bank on that day along with the following information.

Outstanding cheques, $$2,658.$

Included with the July cancelled cheques returned by the bank was a $$34$ debit memo for bank services.

Cheque #$919,$ returned with the cancelled cheques, was correctly drawn for $$785$ in payment of the utility bill and was paid by the bank on July $15.$ However, it had been recorded with a debit to Utilities Expense and a credit to Cash as though it were for $$875.$

The July $31$ cash receipts, $$3,883,$ were placed in the bank$$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 $31.$ b$.$ Give the journal entries that Kesler Co$.$ should make as a result of having prepared the bank reconciliation in part $($a$).$ 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".$)$