Miller Companys general ledger shows a checking account balance of $24,000 on July 31. The July cash receipts of $1,800, included in the general ledger balance, are placed in the night depository at the bank on July 31 and processed by the bank on August 1. The bank statement dated July 31 shows bank service fees of $50. The bank processes all checks written by the company by July 31 and lists them on the bank statement, except for one check totaling $1,400. The bank statement shows a balance of $23,550 on July 31.

1.Prepare a bank reconciliation to calculate the correct ending balance of cash on July 31.

2.Record the necessary entry(ies) to adjust the balance for cash.