Answer:
A. Cash balance per bank	$ 9,066	
Cash balance per books $9,066
B.Jul'31	
Dr Cash $1,216	
Dr Expenses for collection $ 26
 Cr Note receivables $ 1,200
Cr Interest revenue $ 42
Jul'31	
Dr Miscellaneous Expenses $ 34
Cr Cash $ 34
Explanation:
A. Preparation of Bank Reconciliation at July 31
BANK RECONCILIATION 
Cash balance per bank, July 31,	$7,863	
Add Deposit in transit	$ 1,800	
Less Outstanding checks	($597)
Adjusted cash balance	$ 9,066	
Cash balance per books, July 31	$7,884	
Collection of note receivable $1,216
 ($1200+$42-$26)	
Less Bank service charge	($34)
Adjusted cash balance	$ 9,066	
B. Preparation of the adjusting journal entries at July 31 on the books of Crane Video Company
JOURNAL ENTRIES
Jul'31	
Dr Cash $1,216	
Dr Expenses for collection $ 26
 Cr Note receivables $ 1,200
Cr Interest revenue $ 42
(To record note collection by bank)	
 
Jul'31	
Dr Miscellaneous Expenses $ 34
 Cr Cash $ 34
(To record bank service charges)