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.