Lila Bergman Inc. shows the following information:

The cash account on July 31 shows a balance of 17,198.00 and the bank statement for the same date shows a balance of $18,924.55. The following activity is indicated below:

An unrecorded deposit of $724.50 was entered on the bank's records of August 1.

A customer's NSF Check of $173.80 was included with the bank statement.

A check received from a customer was incorrectly recorded as $94 instead of $49.

A note was collected by the bank in the amount of $2,025. Included in this amount was $25 interest.

The service charge for the month was $15.

A deposit of $951.75 was mailed to the bank on July 31, but was not yet recorded by the bank.

The following checks had been mailed to creditors but have not been presented to the bank for payment:

#439 $57.40

#444 $147.50

#446 $214.80

#454 $191.90

#460 $373.51

#462 $626.49

Required: On the following pages,

1. Prepare Lila Bergman Inc.'s July 31 Bank Reconciliation.

2. Prepare the adjusting journal entries that affect the cash account, with explanations.

3. Post the adjusting entries to the cash account in General Ledger that reflects the reconciled cash balance.