(Bank Reconciliation and Adjusting Entries) Kipling Company deposits all receipts and makes all payments by check. The following information is available from the cash records.
June 30 Â Bank Reconciliation
Balance  per bank
$7,000
Add: Â Deposits in transit
1,540
Deduct: Â Outstanding checks
-2,000
Balance  per books
$6,540
Month of  July Results
Per Bank
Per Books
Balance  July 31
$8,650
$9,250
July deposits
4,500
5,810
July  checks
4,000
3,100
July  note collected (not included in July deposits)
1,500
—
July  bank service charge
15
July NSF  check from a customer, returned by the bank (recorded by bank as a charge)
335
Instructions
(a) Prepare a bank reconciliation going from balance per bank and balance per book to correct cash balance.
(b) Prepare the general journal entry or entries to correct the Cash account.