The bank reconciliation prepared by Winfield Construction on June $30,2023,$ appeared as follows:

Winfield Construction

Bank Reconciliation

June $30,2023$

Bank statement balance $ $8,900$ Book balance $ $9,480$

Add:

Deposit of June $30$ in transit $1,340$

$ $10,240$

Deduct:

Outstanding cheque #$14760$

Adjusted bank balance $ $9,480$ Adjusted book balance $ $9,480$

The Cash account in the General Ledger appeared as follows on July $31$:

Cash Acct. No$.101$

Date Explanation PR Debit Credit Balance

$2023$

June $30$ Balance $9,480$

July $31$ CR$34,73814,218$

$31$ CD$62,94711,271$

A list of deposits made and cheques written during July, taken from the Cash Receipts Journal and Cash Disbursements Journal, is shown below:

Deposits Made

July $8$ $ $1,210$

$111,570$

$241,357$

$31601$

Total July Cash Receipts $ $4,738$

Cheques Written

No$.52$ $ $1,685$

$53906$

$54356$

Total July Cash Disbursements $ $2,947$

The following bank statement is available for July:

Bank Statement

To: Winfield Construction July $31,2023$

Bank of Montreal

Cheques$/$Charges Deposits$/$Credits Balance

$8,900$

NSF $07/0243707/021,3409,803$

#$5207/081,68507/081,2109,328$

#$9607/1139707/111,57010,501$

$07/241,35711,858$

#$5407/3135607/3111,502$

NSF $=$ Not Sufficient

Funds SC $=$ Service

Charge PMT $=$ Principal

Payment INT $=$ Interest

In reviewing cheques returned by the bank, the bookkeeper noted that cheque #$96$ written by Winburn Construction in the amount of $$397$ was charged against Winfield$$s account in error by the bank. The NSF cheque was regarding a customer account, Jim Anderson.

Required:

$1.$ Prepare a bank reconciliation at July $31.$

$2.$ Prepare the necessary journal entry to bring the General Ledger Cash account into agreement with the adjusted balance on the bank reconciliation.