The bank reconciliation prepared by Winfield Construction on June 30, 2020, appeared as follows:

Winfield Construction
Bank Reconciliation
June 30, 2020
Bank statement balance	$	8,500	Book balance	$	9,080
Add:
Deposit of June 30 in transit		1,310
	$	9,810
Deduct:
Outstanding cheque #14		730
Adjusted bank balance	$	9,080	Adjusted book balance	$	9,080

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

Cash								Acct. No. 101
Date			Explanation	PR	Debit	Credit		Balance
2020
June	30		Balance					9,080
July	31			CR3	4,391			13,471
	31			CD6		2,722		10,749

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		$	1,130
	11			1,450
	24			1,255
	31			556
Total July Cash Receipts			$	4,391

Cheques Written
No.	52	$	1,557
	53		838
	54		327
Total July Cash Disbursements		$	2,722

The following bank statement is available for July:

Bank Statement
To: Winfield Construction				July 31, 2020 Bank of Montreal
Cheques/Charges				Deposits/Credits		Balance
						8,500
NSF	07/02	405		07/02	1,310	9,405
#52	07/08	1,557		07/08	1,130	8,978
#96	07/11	369		07/11	1,450	10,059
				07/24	1,255	11,314
#54	07/31	327		07/31		10,987
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 $369 was charged against Winfields 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.