Question

Problem 4-3B Prepare the bank reconciliation and record cash adjustments (LO4-5) [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 $5,740 Cash Balance July 1, Cash 2021 + Receipts $ 7,470 $8,690 Cash Receipts Date Desc. 7/9 Sales 7/21 Sales 7/31 Sales Date Amount $2,650 3,230 2,810 Cash Disbursements $10,420 Cash Disbursements Check Desc. 531 Rent 532 Salaries Equipment Utilities 535 Advertising 7/19 533 Amount $ 1,590 2,050 4,400 990 1,390 $10,420 $8,690 Member FDIC 2252790471 P.O. Box 123878 FIDELITY UNION Gotebo, OK 73041 You Can Bank On Us (588) 377-OKIE Account Holder: Glover Incorporated Account Number : 519 Main Street Gotebo, OK 73041 Statement Date: Beginning Balance Deposits and Credits Withdrawals and Debits July 1, 2021 NO. Total NO. Total $8,150 $5,939 7 $ 10,159 Deposits and Credits withdrawals and Debits Date Amount Dese. Date No. Amount Dese. 7/10 $2,650 DEP 7/2 530 $ 680 July 31, 2021 Ending Balance July 31, 2021 $ 3.930 Daily Balance Date Amount $7.470 CHк 7/2

Answer 1

GLOVER INCORPORATED Bank Reconciliation July 21 2021 Bank's cash balance per bank statement Deposit in transit Company's cash balance 3930 Per general ledger 2810 Interest earned NSF fee Rectification of check #533 error EFT not recorded in books Service feel charged Checks issued but not presented #534 Checks issued but not presented #535 6740 Company cash balance per reconciliation 5740 59 -490 -300 -590 -59 990 1390 6740 Bank balance per reconciliation Journal entries that increase the cash Debit Credit 59 General ledger 1 Cash Interest earned (Being interest earned accounted)