The following information is extracted from the bank statement and the accounting records of the Sun Corporation for the month of July 2007:
1. Cash balance from books, July 31 .......... $1,967.35
2. Cash balance from bank, July 31 ............ 1,980.20
3. NSF check returned by bank with bank statement .... 81.00
4. Note collected by bank on July 31 .......... 190.00
5. Interest on preceding note .............. 5.50
6. Bank service charge for July ............. 4.40
7. Outstanding checks at end of July .......... 150.00
8. Deposit in transit at end of July ........... 247.25

Required
1. Prepare a bank reconciliation for the Sun Corporation for July 31, 2007.
2. Prepare the journal entries necessary to adjust Sun’s books on July 31, 2007.