The information shown below pertains to the cash of Westlake Company.

1. Balance per accounting records before preparing bank reconciliation:

6/30................................................... $24,240

7/31................................................... 24,900

2. Balance per bank statement:

6/30................................................... $25,842

7/31................................................... 25,464

3. Deposits in transit:

6/30.................................................... $ 6,165

7/31.................................................... 11,205

4. Outstanding checks:

6/30.................................................... $ 7,767

7/31.................................................... 9,135

5. Deposits shown on July bank statement (including $6,750 bond interest) $50,292

6. Total charges shown on July bank statement (including $4,500 NSF and $216 SC) 50,670

7. Cash receipts (from customers) for July, per accounting records............. 48,582

8. Cash payments (to vendors) for July, per accounting records.................. 47,922

9. The bank service charge was $216 in July and has not yet been recorded by the company.

10. A check for $4,500 marked NSF was returned with the July bank statement. The check had been received on July 23 from a customer on account, and was recorded on that date in the usual manner. The company has not yet recorded the returned check.

11. The bank collected $6,750 of bond interest for Westlake Company during July and credited the proceeds to the company's account. The company earned the interest during the accounting period but has not yet recorded it.

12. On July 12, the company issued a check for $3,000 for the purchase of land. The check, which cleared the bank during July, was incorrectly recorded by the company for $3,600.

Instructions (use page 4 for solution):

a. Prepare in good form a bank reconciliation as of July 31 for Westlake Company.

b. Prepare the journal entries that are necessary for Westlake Company on July 31.