The July 31, 2014, bank statement of Fluevog Shoes has just arrived from the Royal Bank. To prepare the Fluevog Shoes bank reconciliation, you gather the following data:

a. The Fluevog Shoes Cash account shows a balance of $39,518 on July 31.

b. The bank statement includes two charges for returned cheques from customers. One is a $3,558 cheque received from Trinity Western and deposited on July 20, returned by Trinity Western's bank with the imprint "Unauthorized Signature." The other is an NSF cheque in the amount of $988 received from Mavis Jones. This cheque had been deposited on July 17.

c. Fluevog Shoes pays rent ($5,650) and utilities ($2,120) each month by EFT.

d. The following Fluevog Shoes cheques are outstanding at July 31:

Cheque No. ___________________________ Amount

291 ..........................................$ 306

322 ..........................................1,074

327 ..........................................4,312

329 .......................................... 82

330 ..........................................3,096

331 .......................................... 432

332 ..........................................1,860

e. The bank statement includes a deposit of $11,466, collected by the bank on behalf of Fluevog Shoes. Of the total, $11,208 is collection of a note receivable, and the remainder is interest revenue.

f. The bank statement shows that Fluevog Shoes earned $26 in interest on its bank balance during July. This amount was added to the Fluevog Shoes account by the bank.

g. The bank statement lists a $144 subtraction for the bank service charge.

h. On July 31, the Fluevog Shoes accountant deposited $3,378, but this deposit does not appear on the bank statement.

i. The bank statement includes a $4,200 deposit that Fluevog Shoes did not make. The bank had erroneously credited the Fluevog Shoes account for another bank customer's deposit.

j. The July 31 bank balance is $50,534.

Required

1. Prepare the bank reconciliation for Fluevog Shoes at July 31, 2014.

2. Record in general journal form the entries that bring the book balance of Cash into agreement with the adjusted book balance on the reconciliation. Include an explanation for each entry.