This information pertains to Lance Company:

$1.$ Cash balance per bank on July $31...$ $ $8,732.$

$2.$ July bank service charge not recorded by Lance Co$....$ $$45$

$3.$ Cash balance per Lance Co$.$s books on July $31...$ $ $8,768.$

$4.$ Deposits in transit on July $31...$ $ $3,500$

$5.$ $ $2,023$ collected by the bank $($from a customer of Lance $-$ electronic transfer$)$

$6.$ Outstanding checks on July $31...$ $ $1,486$

$($a$)$ Prepare a bank reconciliation.

$($b$)$ Prepare the adjusting entries for Lance Co$.$ on July $31.$

$($Note: entries only needed for Lance Co$.$ so that their $$books$$ reflect correct updated info from the bank reconciliation.

$($a$)$ Lance Company

Bank Reconciliation

July $31,20$XX

Subtotal $12,232$

Adjusted cash balance per bank $ $10,746$

Subtotal $10,791$

Adjusted cash balance per books $ $10,746$

Date Account Titles and Explanation Debit Credit

July $31$

$($b$1)$

July $31$

$($b$2)$