The following information are related to Sbitany Co$.$

$1.$ Cash balance per bank. Aug $31=$ $$7,262,000.$

$2.$ Aug bank service charge not recorded by the depositor $$29,000.$

$3.$ Cash balance per books. Aug $31.$ $$7,283,000.$

$4.$ Deposits in transit, Aug $31.$ $$1,300,000.$

$5.$ Bank collected $$700,000$ note for Sbitany in Aug, plus interest $$36,000.$ less fee $$20,000.$ The collection has not been recorded by Sbitany, and no interest has been accrued.

$6.$ Outstanding checks, Aug $31.$ $$592,000.$

Instructions

a$.$ Prepare a bank reconciliation at Aug $31.$

b$.$ Journalize the adjusting entries at Aug $31$ on the books of Sbitany.