Spectrum Company : Journalize the entry or entries that should be made by the company.

Spectrum Company

The following data were accumulated for use in reconciling the bank account of Spectrum Co. for July:

a. Cash balance according to the company’s records at July 31, $8,346.50.
b. Cash balance according to the bank statement at July 31, $9,066.35.
c. Checks outstanding, $3,175.25.
d. Deposit in transit, not recorded by bank, $2,615.40.
e. A check for $240 in payment of an account was erroneously recorded in the check register as $420.
f. Bank debit memorandum for service charges, $20.00.

Required:
a) Prepare a bank reconciliation statement (15 marks)

b) Journalize the entry or entries that should be made by the company (10 marks)