Question
Harrison Company maintains a checking account at the bank of Milwaukee. The bank provides a bank statement along with canceled checks on the last day
Harrison Company maintains a checking account at the bank of Milwaukee. The bank provides a bank statement along with canceled checks on the last day of each month. The August 2016 bank statement included the following information:
Balance, August 1, 2016 $68,326
Deposits 245,300
Checks processed (236,222)
Service charges (50)
NSF checks (680)
Monthly deposit into savings account deducted directly by bank from account (2,000)
Balance, August 31, 2016 $74,674
The companys general ledger account had a balance of $78,984 at the end of August. Deposits outstanding totaled $8,200 and all checks written by the company were processed by the bank except for those totaling $8,420. In addition, a $2,000 check to supplier correctly recorded by the bank was incorrectly recorded by the company as a $200 credit to cash.
Required:
1. Prepare a bank reconciliation for the month of August.
2. Prepare the necessary journal entries at the end of August to adjust the general ledger cash account
please answer the question completely!!
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