Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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
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: Prepare a bank reconciliation for the month of July. Balance, July 1, 2021 Deposits Checks processed Service charges NSF checks Monthly payment on note, deducted directly by bank from account (includes $970 in interest) Balance, July 31, 2021 $ 57,053 180,600 (193,710) (30) (1,750) (3,870) $ 38,293 Bank Balance to Corrected Balance Balance per bank statement The company's general ledger account had a balance of $40,293 at the end of July. Deposits outstanding totaled $7,400 and all checks written by the company were processed by the bank except for those totaling $8,530. In addition, a $3,100 July deposit from credit customer was recorded as a $310 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 cash account. Corrected cash balance Book Balance to Corrected Balance Balance per books Corrected cash balance
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started