East End Hospital has a bank account. Consider the following information:

a. Balances as of July 31: per books, $50,000; per bank statement, $35,860.

b. Cash receipts of July 31 amounting to $9,000 were recorded and then deposited in the bank’s night depository. The bank did not include this deposit on its July statement.

c. The bank statement included service charges of $140.

d. Patients had given the hospital some bad checks amounting to $11,000. The bank marked them NSF and returned them with the bank statement after charging the hospital for the $11,000. The hospital had made no entry for the return of these checks.

e. The hospital’s outstanding checks amounted to $6,000.

Required

1. Prepare a bank reconciliation as of July 31.

2. Prepare the hospital journal entries required by the given information.