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$57,678Deposits181,100Checks processed(194,210)Service charges(55)NSF checks(2,000)Monthlypayment on note,deducted directly by bank from account

(includes $120 in interest)(4,120)Balance, July 31, 2021$38,393

The company's general ledger account had a balance of $41,143 at the end of July. Deposits outstanding totaled $7,900 and all checks written by the company were processed by the bank except for those totaling $8,580. In addition, a $3,600 July deposit from a credit customer was recorded as a $360 debit to cash and credit to accounts receivable, and a check correctly recorded by the company as a $55 disbursement was incorrectly processed by the bank as a $550 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.