Question

Exercise 7-34 (Algo) Bank reconciliation and adjusting entries (Appendix 7A) points 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: Skipped 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) Balance, July 31, 2021 $ 57,803 181,200 (194,310) (60) (2,050) eBook (4,170) Print $ 38,413 References 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Dronare a han rernnritiation for the month of love

Answer 1

Harrison Company Bank Reconciliation July 31, 2021 Ending Balance per Books Additions: Company's Error ($3,700 - $370) $41,313 $3,330 $44.643 Deductions: Notes Payable Including Interest NSF Check Service Charges Adjusted balance $4,170 $2,050 $60 $6,280 $38,363 $38,413 Ending Balance per Bank Additions: Deposits in transit Error ($600 - $60) $8,000 $540 $46,953 Deductions: Outstanding checks Adjusted balance $8,590 $38,363 (b) Date Account Titles and Explanation Debit Credit $2,050 July 31, 2021 Accounts Receivable Cash (To record NSF Check) $2,050 $4,000 $170 Notes Payable Interest Expense Cash (To record Notes Payable & Interest Expense) $4,170 $60 Miscellaneous Expense Cash (To record service charges) $60