On August $1,20$X$1,$ Sofia Marciano, the accountant for European Exports, downloaded the company's July $31,20$X$1,$ bank statement

from the bank's website. The balance shown on the bank statement was $$28,750.$ The July $31,20$X$1,$ balance in the Cash account in

the general ledger was $$14,183.$

Sofia noted the following differences between the bank's records and the company's Cash account in the general ledger:

a$.$ An electronic funds transfer for $$14,300$ from Mannheim Equipment, a customer located in Germany, was received by the bank

on July $31.$

b$.$ Check $1422$ was correctly written and recorded for $$1,200.$ The bank mistakenly paid the check for $$1,240.$

c$.$ The accounting records indicate that Check $1425$ was issued for $$69$ to make a purchase of supplies. However, examination of

the check online showed that the actual amount of the check was for $$99.$

d$.$ A deposit of $$790$ made after banking hours on July $31$ did not appear on the July $31$ bank statement.

e$.$ The following checks were outstanding: Check $1429$ for $$1,248$ and Check $1430$ for $$140.$

f$.$ An automatic debit of $$261$ on July $31$ from CentralComm for telephone service appeared on the bank statement but had not

been recorded in the company's accounting records.

Required:

Prepare a bank reconciliation for the firm as of July $31.$

Record general journal entries for the items on the bank reconciliation that must be journalized.

Analyze:

What was the effect on total expenses as a result of the general journal entries recorded?