Rodriguez Company maintains a chequing account at the ATLAS MARA Bank. At July 31 , selected data from the ledger balance and the bank statement are shown below. Cash in Bank Analysis of the bank data reveals that the credits consist of K79,000 of July deposits and a credit memorandum of K4,470 for the collection of a K4,400 note plus interest revenue of K70. The July debits per bank consist of cheques cleared K74,700 and a debit memorandum of K56 for printing additional company cheques. You also discover the following errors involving July cheques. (1) A cheque for K230 to a creditor on account that cleared the bank in July was journalized and posted as K320. (2) A salary cheque to an employee for K255 was recorded by the bank for K155. The June 30 bank reconciliation contained only two reconciling items: deposits in transit K8,000 and outstanding cheques of K6,200. Instructions (a) Prepare a bank reconciliation at J (b) Journalize the adjusting entries to be made by Rodriguez Company. Assume that interest on the note has not been accrued. (c) Explain the importance of the bank reconciliation to Rodriguez company 
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