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 2018 bank statement included the following information:

Balance, July 1, 2018	$	56,428
Deposits		180,100
Checks processed		(193,210	)
Service charges		(60	)
NSF checks		(1,500	)
Monthly loan payment deducted directly by bank from account (includes $520 in interest)		(3,620	)
Balance, July 31, 2018	$	38,138

The companys general ledger account had a balance of $39,938 at the end of July. Deposits outstanding totaled $6,900 and all checks written by the company were processed by the bank except for those totaling $8,480. In addition, a $2,600 July deposit from a credit customer was recorded as a $260 debit to cash and credit to accounts receivable, and a check correctly recorded by the company as a $60 disbursement was incorrectly processed by the bank as a $600 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.