The following information pertains to Crane Video Company.
- Cash balance per bank, July 31, $7,263.
- July bank service charge not recorded by the depositor $28.
- Cash balance per books, July 31, $7,284.
- Deposits in transit, July 31, $1,300.
- Bank collected $700 note for Crane in July, plus interest $36, less fee $20. The collection has not been recorded by Crane, and no interest has been accrued.
- Outstanding checks, July 31, $591.
Instructions
(a)Prepare a bank reconciliation at July 31.
(b)Journalize the adjusting entries at July 31 on the books of Crane Video Company.