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 2018 bank statement included the following information:

Balance, July 1, 2018 $55,803

Deposits 179,600

Checks processed (192,710)

Service charges (35)

NSF checks (1,250)

Monthly loan payment deducted directly by bank from account (includes $270 in interest). (3,370)

Balance, July 31, 2018. $38,038

The companys 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.