The following errors were found when the controller at Country Lane Camping was doing the July 31 bank reconciliation:

1. On July 9, Country Lane recorded a deposit as $2,275. The correct amount was $2,725. The deposit was for the collection of an account receivable and the bank recorded it correctly.

2. On July 14, Country Lane recorded a payment on account as $950. The correct amount was $590. It was correctly recorded by the bank.

3. On July 16, Country Lane recorded a payment for the purchase of supplies as $459. The correct amount was $549. It was correctly recorded by the bank.

4. On July 22, the bank recorded a deposit as $750. The correct amount was $720. This error was corrected by the bank on July 23. Country Lane had correctly recorded the deposit.

5. On July 31, Country Lane recorded a deposit as $778. The correct amount was $887. The deposit was for the collection of an account receivable. This deposit was correctly recorded by the bank on August 1.

6. On July 31, the bank debited Country Lane's account $282 for a cheque written by another company, Country Land, because the account number on the cheque had been damaged. The bank employee who looked up the account number made a mistake.

Instructions

(a) Describe the impact of each of these items on the bank reconciliation.

(b) Prepare any adjusting entries that Country Lane will need to record?