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.
Instructions
(a) Prepare bank reconciliation at July 31.
(b) Journalize the adjusting entries at July 31 on the books of Worthy Tours.