Exercise $7-35($Algo$)$ Bank reconciliation and adjusting entries $[$Appendix $7$A$]$

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 $2024$ bank statement included the following information:

Balance, July $1,2024$ $ $57,178$

Deposits $180,700$

Checks processed $(193,810)$

Service charges $(35)$

NSF checks $(1,800)$

Monthly payment on note, deducted directly by bank from account

$($includes $$820$ in interest$)(3,920)$

Balance, July $31,2024$ $ $38,313$

The company$$s general ledger account had a balance of $$40,463$ at the end of July. Deposits outstanding totaled $$7,500$ and all checks written by the company were processed by the bank except for those totaling $$8,540.$ In addition, a $$3,200$ July deposit from a credit customer was recorded as a $$320$ debit to cash and credit to accounts receivable, and a check correctly recorded by the company as a $$35$ disbursement was incorrectly processed by the bank as a $$350$ disbursement.

Required:

Prepare a bank reconciliation for the month of July.

Prepare the necessary journal entries at the end of July to adjust the general ledger cash account. Use the miscellaneous expense account to record the bank service charges.

Journal entry worksheet

$1$

Record the credits to cash revealed by the bank reconciliation.

Note: Enter debits before credits.