(1) cash balance per bank, july 31, $8,338.
(2) july bank service charge not recorded by the depositor $60.
(3) cash balance per books, july 31, $8,374.
(4) deposits in transit, july 31, $3,710.
(5) $3,026 collected for sandhill company in july by the bank through electronic funds transfer. the collection has not been recorded by sandhill company.
(6) outstanding checks, july 31, $708.

prepare a bank reconciliation at july 31, 2017.

Cash account balance after reconciliation: 11,340 dollars

Explanation:

On a bank reconciliation we adjust the balance for the unknow information for each party:

Bank: do not know about a written check until the person goes and cash it. Same with the deposit in transet, we must accrued for this values:

Cash balance per bank, July 31,  8,338.

Deposits in transit, July 31,            3,710.

Outstanding checks, July 31         (708)  

Adjusted bank cash balance       11,340

The firm is unaware of the bank charges until reception of the bank statement. It also didn't know about the bank colelction so this are adjustment for hte cash account:

Cash balance per books, July 31, 8,374.

Collected for Sandhill Company   3,026

July bank service charge                 (60)  

Adjusted cash account balance:  11,340

month 1 start amount =$3287.90 interest=(3287.90x0.0145/12)3.97 total to pay=$3291.81 paid =$1200 balance =$2,091.87

month 2 starting amount= $2,091.87 interest =$25.28 total to pay =$2117.15 paid =$1200 balance $917.15

month 3 starting amount =$917.15 interest =$11.08 total to pay =$928.23 paid =$928.23 balance =$0 total to pay 1200+1200+928.23 = $3328.23 it will take 3 months to pay a total of $3328.23