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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.

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