The following information pertains to Gilmore Company.

1. Cash balance per bank, July 31, $7,328.

2. July bank service charge not recorded by the depositor $40.

3. Cash balance per books, July 31, $7,280.

4. Deposits in transit, July 31, $2,700.

5. Note for $2,000 collected for Gilmore in July by the bank, plus interest $36 less fee $20. The collection has not been recorded by Gilmore, and no interest has been accrued.

6. Outstanding checks, July 31, $772.

Instructions

(a) Prepare a bank reconciliation at July 31, 2010.

(b) Journalize the adjusting entries at July 31 on the books of Gilmore Company.