On July 31, Beaupré Ltd. had a cash balance of $14,786. The statement from the Caisse Populaire on that date showed a balance of $19,988. A comparison of the bank statement with the Cash account revealed the following:

1. The bank statement included a bank service charge of $100.

2. The bank statement included two electronic collections from customers on account: $4,062 from D. Bouchard and $48 from A. Tremblay. These were not previously recorded.

3. The July 31 cash receipts of $2,786 were not included in the bank deposits for July. These receipts were deposited by the company in a night deposit vault on July 31.

4. Company cheque #2480 for $1,170, issued to J. Gauthier, a creditor, cleared the bank in July and was incorrectly entered in the general journal on July 10 as $1,710.

5. A deposit of $1,800 made by another company was incorrectly added to Beaupré's account by the Caisse Populaire.

6. Salaries of $4,000 were paid electronically during the month. These have already been recorded by the company.

7. Cheques outstanding on June 30 totalled $1,844. Of these, $1,378 worth cleared the bank in July. There were $2,892 of cheques written in July that were still outstanding July 31.

8. On July 31, the bank statement showed a returned (NSF) cheque for $1,640 received by the company from a customer on account. In addition, the bank charged an $80 processing fee for this transaction.

Instructions

(a) Prepare the bank reconciliation on July 31.

(b) Prepare any adjusting journal entries required from the reconciliation.