The following information pertains to Worthy Tours:

1. Cash balance per bank, July 31, $7,263.

2. July bank service charge not recorded by the depositor $28.

3. Cash balance per books, July 31, $7,284.

4. Deposits in transit, July 31, $1,500.

5. Bank collected $800 note for Worthy in July, plus interest $36, less collection fee $20. The collection has not been recorded by Worthy, and no interest has been accrued.

6. Outstanding checks, July 31, $691.

(a) Prepare a bank reconciliation at July 31.

(b) Journalize the adjusting entries at July 31 on the books of Worthy Tours.