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	$	56,678
Deposits		180,300
Checks processed		(193,410	)
Service charges		(70	)
NSF checks		(1,600	)
Monthly payment on note, deducted directly by bank from account (includes $620 in interest)		(3,720	)
Balance, July 31, 2021	$	38,178

The companys general ledger account had a balance of $40,278 at the end of July. Deposits outstanding totaled $7,100 and all checks written by the company were processed by the bank except for those totaling $8,500. In addition, a $2,800 July deposit from a credit customer was recorded as a $280 debit to cash and credit to accounts receivable, and a check correctly recorded by the company as a $70 disbursement was incorrectly processed by the bank as a $700 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.

Prepare a bank reconciliation for the month of July.

Prepare a bank reconciliation for the month of July.

Bank Balance to Corrected Balance
Balance per bank statement	$38,718
Add: Checks outstanding	7,100
Add: Bank error in recording check	630
	7,730
Less: Checks outstanding	(8,500)
Corrected cash balance	$45,908
Book Balance to Corrected Balance
Balance per books
Corrected cash balance