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The bank reconciliation prepared by Winfield Construction on June 30, 2020, appeared as follows: Winfield Construction Bank Reconciliation June 30, 2020 Bank statement balance $

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

Winfield Construction
Bank Reconciliation
June 30, 2020
Bank statement balance $ 8,400 Book balance $ 8,970
Add:
Deposit of June 30 in transit 1,290
$ 9,690
Deduct:
Outstanding cheque #14 720
Adjusted bank balance $ 8,970 Adjusted book balance $ 8,970

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 8,970
July 31 CR3 4,358 13,328
31 CD6 2,703 10,625

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 $ 1,120
11 1,440
24 1,246
31 552
Total July Cash Receipts $ 4,358

Cheques Written
No. 52 $ 1,546
53 832
54 325
Total July Cash Disbursements $ 2,703

The following bank statement is available for July:

Bank Statement
To: Winfield Construction July 31, 2020 Bank of Montreal
Cheques/Charges Deposits/Credits Balance
8,400
NSF 07/02 402 07/02 1,290 9,288
#52 07/08 1,546 07/08 1,120 8,862
#96 07/11 366 07/11 1,440 9,936
07/24 1,246 11,182
#54 07/31 325 07/31 10,857
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 $366 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.

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