The following information pertains to Ghose Company.
1. Cash balance per bank, July 31, $7,328.
2. July bank service charge not recorded by the depositor $38.
3. Cash balance per books, July 31, $7,364.
4. Deposits in transit, July 31, $2,700.
5. Note for $2,000 collected for Ghose in July by the bank, plus interest $36 less fee $20. The collection has not been recorded by Ghose, and no interest has been accrued.
6. Outstanding checks, July 31, $686.
Instructions
(a) Prepare a bank reconciliation at July 31, 2012.
(b) Journalize the adjusting entries at July 31 on the books of Ghose Company.