The following information pertains to blossom company.

(1) cash balance per bank, july 31, $7,888.
(2) july bank service charge not recorded by the depositor $51.
(3) cash balance per books, july 31, $7,924.
(4) deposits in transit, july 31, $3,260.
(5) $2,576 collected for blossom company in july by the bank through electronic funds transfer. the collection has not been recorded by blossom company.
(6) outstanding checks, july 31, $699.

(a) prepare a bank reconciliation at july 31, 2017. (list items that increase balance as per bank & books first.)
(b) journalize the adjusting entries at july 31 on the books of blossom company. (credit account titles are automatically indented when amount is entered. do not indent manually.)

Explanation:

(A) The preparation of the  bank reconciliation statement on July 31, 2017 is presented in the spreadsheet. Kindly find the attachment below:  

(B) The journal entries are shown below:

Cash A/c Dr $2,576

   To Accounts receivable $,2576

(Being cash is collected)

Bank service charges expense A/c Dr $51

      To Cash A/c                                  $51

(Being bank service charges paid)

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