On July 31, 2025, Keeds Company had a cash balance per books of \$6,140. The statement from Dakota State Bank on that date showed a balance of \(\$ 7,690.80\). A comparison of the bank statement with the Cash account revealed the following facts.

1. The bank service charge for July was \(\$ 25\).

2. The bank collected \(\$ 1,520\) from a customer for Keeds Company through electronic funds transfer.

3. The July 31 receipts of \(\$ 1,193.30\) 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 check No. 2480 issued to L. Taylor, a creditor, for \(\$ 384\) that cleared the bank in July was incorrectly entered in the cash payments journal on July 10 for \(\$ 348\).

5. Checks outstanding on July 31 totaled \(\$ 1,860.10\).

6. On July 31 , the bank statement showed an NSF charge of \(\$ 575\) for a check received by the company from W. Krueger, a customer, on account.

Instructions

a. Prepare the bank reconciliation as of July 31 .

b. Prepare the necessary adjusting entries at July 31 .