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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: 57,803 181,200 (194,310) (60) (2,050) Balance, July 1, 2021 Deposits Checks processed Service charges NSF checks Monthly payment on note, deducted directly by bank from account (includes $170 in interest) (4,170) Balance, July 31, 2021 38,413 The company's general ledger account had a balance of $41,313 at the end of July. Deposits outstanding totaled $8,000 and all checks written by the company were processed by the bank except for those totaling $8,590. In addition, a $3,700 July deposit from a credit customer was recorded as a $370 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
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