P$7\mathrm{.}7$A $($LO $4)$ AP On July $31,2024,$ Daisy Company had a cash balance per books of $$7,250.$ The statement from Canada Bank on that date showed a balance of $$7,690\mathrm{.}80.$ A comparison of the bank statement with the Cash account revealed the following facts:

The bank service charge for July was $$25.$

The bank collected $$1,520$ of rental revenue for Daisy Company through electronic funds transfer.

The July $31$ receipts of $$1,193\mathrm{.}30$ were not included in the bank deposits for July, These receipts were deposited by the company in a night deposit vaut on july $3?$

A$.$ The June $30$ deposit of $$2,350$ was not included in the June bauk statement. This amount was irciuded in the July statement.

Compary cheque No$.2480$ issued to M$.$ Wallace, a creditor, for $$384$ that cleared the bank in July ins incerreculy ertered as a cash payment on July $10$ for $$348.$

Casht Suies of $$870$ on Iuly $28$ were deposited in the bank. The journal entry to record the cash rersipt ind the dspusit slip were incorrectly made out and recorded by the bockearer as $$730.$ The bank detecred the error on the deposit slip and credited Daisy Company for the correct aca urat.

Checues $42483$ for $$830\mathrm{.}10,$ #$2485$ for $$575\mathrm{.}00,$ and #$2488$ for $$455$ were outstanding on Juiy $32.$

Un July $31,$ the bank statement showed an NSF charge of $$800$ for a cheque received by the company from $H.$ Rai, on account. Included in this amount was a $$50$ service charge. The company policy is to bill the service charge back to the customer.

Payment of the monthly insurance was made using a monthly scheduled EFT payment for $$975$ that the bookkeeper forgot to record.

Instructions

a$.$ Prepare the bank reconciliation as at July $31.$

b$.$ Prepare the necessary entries related to the bank reconciliation at July $31.$

Taking It Further The owner of Daisy Company is reviewing the September bank reconciliation and he has noted that there are bank charges and other items that remain on the bank reconciliations from June, July, and August on the book side. Why are items from June, July, and August appearing on the September bank reconciliation when the bank account has been reconciled?

Prepare a ban required entri