On August $1,20$X$1,$ Sofia Marciano, the accountant for European Exports, downloaded the company's July $31,20$X$1,$ bank statement from the bank's Website. The balance shown on the bank statement was $$28,670.$ The July $31,20$X$1,$ balance in the Cash account in the general ledger was $$14,821.$

Sofia noted the following differences between the bank's records and the company's Cash account in the general ledger:

An electronic funds transfer for $$13,500$ from Mannheim Group, a customer located in Germany, was received by the bank on July $31.$

Check $1422$ was correctly written and recorded for $$1,200.$ The bank mistakenly paid the check for $$1,230.$

The accounting records indicate that Check $1425$ was issued for $$66$ to make a purchase of supplies. However, examination of the check online showed that the actual amount of the check was for $$96.$

A deposit of $$710$ made after banking hours on July $31$ did not appear on the July $31$ bank statement.

The following checks were outstanding: Check $1429$ for $$1,240$ and Check $1430$ for $$132.$

An automatic debit of $$253$ on July $31$ from CentralComm for telephone service appeared on the bank statement but had not been recorded in the company's accounting records.

Required:

Prepare a bank reconciliation for the firm as of July $31.$

Record general journal entries for the items on the bank reconciliation statement that must be journalized. Date the entries July $31,20$X$1.$

Analyze:

What effect on total expenses occurred as a result of the general journal entries recorded?