Question

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. GLOVER INCORPORATED Cash Account Records July 1, 2021, to July 31, 2021 Cash Balance - July 31, 2021 $5,880 Cash Balance July 1, Cash 2021 + Receipts $7,390 $8,630 Cash Receipts Date Desc. 7/9 Sales 7/21 Sales 7/31 Sales Amount $2,630 3,210 2,790 Date 7/7 7/12 7/19 7/22 7/30 Cash Disbursements $10,140 Cash Disbursements Check# Desc. 531 Rent 532 Salaries 533 Equipment 534 Utilities 535 Advertising Amount $ 1,570 2,030 4,200 970 1,370 $10,140 $8,630 Member FDIC FIDELITY UNION You Can Bank On Us P.O. Box 123878 Gotebo, OK 73041 (580) 377-OKIE Account Holder: 2252701471 Rent Number TOY < Prey 792 of 6 Next >

Answer 1

Bank's cash balance		Company's cash balance
Per Bank statement	3990	Per general ledger	5880
Deposits outstanding	2790	Interest earned	57
Checks outstanding	-2340	EFT on office supplies	-570
		NSF check	-470
		Service fees	-57
		Company error	-400
Bank balance per reconciliation	4440	Company balance per reconciliation	4440

General Journal	Debit	Credit
Cash	57
Interest revenue		57
General Journal	Debit	Credit
Service fee expense	57
Office supplies	570
Equipment	400
Accounts receivable	470
Cash		1497