The following information pertains to Arc Key Company.

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Prepare the bank reconciliation at July $31$ by determining the correct balances for both book and bank using the template. Prepare any required journal entries.

Prepare the journal entry, if any, to record deposits in transit. Do not record any other adjustments. We will do them in later steps.

$\backslash$table$[[$Account$,,$July $31],[$No entry required,,$],[,,],[,,],[,,]]$

Prepare the journal entry, if any, to correct error in recording check #$1156.$ Do not record any other adjustments. We will do them in later steps.

$\backslash$table$[[$Account$,$July $31,],[$Accounts Receivable,$240,],[$Cash$,,],[,,],[,,]]$

Prepare the journal entry, if any, to record the outstanding check.

$\backslash$table$[[$Account$,,$July $31],[$No entry required,,$],[,,],[,,],[,,]]$

More info

Item

Bank

Arc Key

Cash balance per bank, $$8,900$

Cash balance per books, $$8,159$

July bank service charge not recorded by the depositor, $$50$

Deposits in transit, July $31,$$$720$

Error made by Arc Key in recording check $1156$ to the utility company for $$200$ instead of $$440$

Outstanding check, July $31,$$$1,751$

Correct balances