Problem No. 2 (Bank Reconciliation and Adjusting Entries) Kipling Company deposits all receipts and makes all payments by check. The following information is available from the cash records. June 30 Bank Reconciliation Balance per bank $ 7,000 Add: Deposits in transit 1,540 Deduct: Outstanding checks (2,000) Balance per books $ 6,540 Month of July Results Per Bank $8,650 4,500 4,000 1,500 15 335 Per Books $9,250 5,810 3,100 Balance July 31 July deposits July checks July note collected (not included in July deposits) July bank service charge July NSF check from a customer, returned by the bank (recorded by bank as a charge) Instructions a. Prepare a bank reconciliation going from balance per bank and balance per book to correct cash balance. b. Prepare the general journal entry or entries to correct the Cash account