Problem 4-3B Prepare the bank reconciliation and record cash adjustments (L04-5) The following information applies to the questions displayed below.) The cash records and bank statement for the month of July for Glover Incorporated are shown below. Cash Balance July 31, 2021 $7,070 Cash Balance July 1, Cash 2021 Receipts $6,710 $8,120 Cash Receipts Date Desc. 7/9 Sales 7/21 Sales 7/31 Sales GLOVER INCORPORATED Cash Account Records July 1, 2021, to July 31, 2021 Cash Disbursements $7,760 Cash Disbursements Amount Date Check# Desc. $2,460 7/7 531 Rent 3,040 7/12 532 Salaries 2,620 7/19 533 Equipment 7/22 534 Utilities 7/30 535 Advertising $8,120 I Amount $1,400 1,860 2,500 800 1,200 $7,760 Member FDIC P.O. Box 123878 FIDELITY UNION Gotebo, OK 73041 You Can Bank On Us (588) 371-KIE Account Holder: Glover Incorporated Account Number: 519 Main Street Gotebo, OK 73041 Statement Date: Withdrawals and Beginning Balance Deposits and Credits Debits July 1, 2021 NO. Total NO. Total $7,200 3 $5,540 $ 7,490 Deposits and Credits Withdrawals and Debits Date Amount Desc. Date No. Amount Desc. 7/10 $2,468 DEP 7/2 530 $ 490 CHK 7/22 3,040 DEP 7/10 531 1,400 CHK 2252790471 July 31, 2021 Ending Balance July 31, 2021 $ 5,25e Daily Balance Date Amount 7/2 $6,710 7/10 7,778 Member FDIC 2252798471 P.O. Box 123878 FIDELITY UNION Gotebo, OK 73041 You Can Bank On Us (580) 377-KIE Account Holder: Glover Incorporated Account Number: 519 Main Street Gotebo, OK 73041 Statement Date: Withdrawals and Beginning Balance Deposits and Credits Debits July 1, 2021 NO. Total NO. Total $7,200 3 $5,540 7 $ 7.490 Deposits and credits Withdrawals and Debits Date Amount Desc. Date No. Amount Desc. 7/10 $2,460 DEP 7/2 530 $ 490 CHK 7/22 3,840 DEP 7/10 531 1,400 CHK 7/31 40 INT 7/14 532 1,860 CHK 7/18 300 NSE 7/22 533 3,900 CHHE 7/26 400 EFT 7/30 40 SF July 31, 2821 Ending Balance July 31, 2021 $ 5,250 Daily Balance Date Amount 7/2 $6,710 7/10 7,770 7/14 5,910 7/18 5,610 7/22 5,650 7/26 5,250 7/30 5,210 7/31 $5,250 $5,540 $7,490 Desc. DEP Customer deposit NOTE Note collected EFT Electronic funds transfer INT Interest earned CHK Customer check SF Service fees NSF Nonsufficient funds Additional information: a. The difference in the beginning balances in the company's records and the bank statement relates to check #530, which is outstanding as of June 30, 2021. b. Check #533 is correctly processed by the bank. c. The EFT on July 26 relates to the purchase of office supplies. CO 5 6 Problem 4-3B Part 1 Required: 1. Prepare a bank reconciliation for Glover's checking account on July 31, 2021. (Amounts to be deducted should be indicated with a minus sign. Total entries to the same account together when entering in the bank reconciliation.) GLOVER INCORPORATED Bank Reconciliation July 31, 2021 Bank's Cash Balance Company's Cash Balance Per bank statement $ 5,250 Per general ledger $ Deposits outstanding Interest earned Checks outstanding Office supplies NSF check Service fees Company error 7,070 40 Bank balance per reconciliation Company balance per reconciliation
