Question
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:
Balance, July 1, 2021 | $ | 57,428 | |
Deposits | 180,900 | ||
Checks processed | (194,010 | ) | |
Service charges | (45 | ) | |
NSF checks | (1,900 | ) | |
Monthly payment on note, deducted directly by bank from account (includes $220 in interest) | (4,020 | ) | |
Balance, July 31, 2021 | $ | 38,353 | |
The companys general ledger account had a balance of $40,803 at the end of July. Deposits outstanding totaled $7,700 and all checks written by the company were processed by the bank except for those totaling $8,560. In addition, a $3,400 July deposit from a credit customer was recorded as a $340 debit to cash and credit to accounts receivable, and a check correctly recorded by the company as a $45 disbursement was incorrectly processed by the bank as a $450 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.
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