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Exercise 7-34 (Algo) Bank reconciliation and adjusting entries (Appendix 7A) Harrison Company maintains a checking account at the First National City Bank. The bank provides
Exercise 7-34 (Algo) Bank reconciliation and adjusting entries (Appendix 7A) 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 2021 bank statement included the following information: Balance, July 1, 2021 Deposits Checks processed Service charges NSF checks Monthly payment on note, deducted directly by bank from account (includes $270 in interest) Balance, July 31, 2021 $ 55,803 179,600 (192,710) (35) (1,250) (3,370) $ 38,038 The company's general ledger account had a balance of $39,088 at the end of July. Deposits outstanding totaled $6,400 and all checks written by the company were processed by the bank except for those totaling $8,430. In addition, a $2,100 July deposit from a credit customer was recorded as a $210 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: 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 cash account. Required 1 Required 2 Prepare a bank reconciliation for the month of July. Bank Balance to Corrected Balance Balance per bank statement Corrected cash balance Book Balance to Corrected Balance Balance per books Corrected cash balance Required 1 Required 2 Prepare the necessary journal entries at the end of July to adjust the general ledger cash account. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the credits to cash revealed by the bank reconciliation. Use the miscellaneous expense account to record the bank service charges. Note: Enter debits before credits. General Journal Debit Credit Event 2 Record entry Clear entry View general journal
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