Problem 1:

The bank statement for Strivers, Inc. shows a balance of $9,410 on July 31, while the cash-in-bank account in Strivers books has a balance of $6,625 on this date, after all cash activity for the month July had been posted.

Prepare a bank reconciliation based on the starting balances above, and the following additions and deductions:

a) Checks outstanding, $3,113

b) Deposits still in transit, $1,733

c) Checking account service charges, $38.

d) A note receivable was collected by the bank, $1,850 (this amount

includes interest revenue of $50).

e) A check marked NSF for $425 was returned; the customer was supposedly

paying Strivers on account.

f) A check for $746 paid on account by Strivers, on July 15th had been incorrectly

recorded in Strivers general journal as $764.

Problem 2:

Prepare the two journal entries that are required by the just completed reconciliation from Problem 1, above, for July 31.