Harrison Company maintains a checking account at the First National City Bank. The bank provides a bank statement along with canceled checks on the last day of each month. The July 2011 bank statement included the following information:

The company's general ledger account had a balance of $38,918 at the end of July. Deposits outstanding totaled $6,300 and all checks written by the company were processed by the bank except for those totaling $8,420. In addition, a $2,000 July deposit from a credit customer was recorded as a $200 debit to cash and credit to accounts receivable, and a check correctly recorded by the company as a $30 disbursement was incorrectly processed by the bank as a $300 disbursement.

Required:
1. Prepare a bank reconciliation for the month of July.
2. Prepare the necessary journal entries at the end of July to adjust the general ledger cashaccount.

Transcribed Image Text:

Balance, July 1, 2011 Deposits Checks processed Service charges NSF checks Monthly loan payment deducted directly by bank from account $55,678 1,79,500 (1,92,610) (30) (1,200) (includes $320 in interest) (3,320) Balance, July 31, 2011 $ 38,018