P4A. Bank Reconciliation On July 31, Sullivan Company's Cash in Bank account had a balance of LOS . Flynn the ac- S8,112.62. On that date, the bank statement indicated a balance of $9,098.55. A comparison of re- turned checks and bank advices revealed the following: 1. Deposits in transit July 31 amounted to $3,358.19. 2. Outstanding checks July 31 totaled $1,251.12 3. The bank erroneously charged a $215 check of Solomon Company against the Sullivan bank account. 4. A $15 bank service charge has not yet been recorded by Sullivan Company 5. Sullivan neglected to record $3,000 borrowed from the bank on a ten percent six-month note. The ustomer ceal his part (I), r A's ac- bank statement shows the $3,000 as a deposit. 6. Included with the returned checks is a memo indicating that J. Martin's check for $640 had been returned NSF. Martin, a customer, had sent the check to pay an account of $660 less a $20 discount. Sullivan Company recorded a $107 payment for repairs as $1,070. fictitious Required a. Prepare a bank reconciliation for Sullivan Company at July 31. b. Prepare the journal entry (or entries) necessary to bring the Cash in Bank account into agreement nsidered with the reconciled cash balance on the bank reconciliation