Question

Required information [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 Receipta Date Desc. 7/9 Sales 7/21 Sales 7/31 Sales Amount $2,630 3,210 2,790 Cash - Disbursements $10,140 Cash Disbursements Date Check Desc. 7/7 531 Rent 7/12 532 Salaries 7/19 533 Equipment 7/22 534 Utilities 7/30 535 Advertising Amount S 1,570 2,030 4,200 970 1,370 S10,140 $8,630 Member FDIC 2252790471 July 31, 2021 P.0. Box 123878 FIDELITY UNION Gotebo, OK 73041 You Can Bank On Us (550) 377-CHIE Account Holder: Gloves 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 $8,050 $5,397 7 $ 9,957 Deposits and credits Withdrawals and Debits Date Famount Dese. Date No. Amount Dese. 7/10 $ DEP 7/2 520 $ 660 CHX 7/22 3,210 DEP 7/10 531 1, 570 CHX 7/31 57 INT 7/14 532 2,030 CHK 7/18 470 NSE 7/22 533 4,600 CHX 7/26 570 ΣΕΤ 7/30 57 SE Ending Balance July 31, 2021 $ 3,990 Daily Balance Date Amount 7/2 $7,290 7/10 8, 450 7/14 6,420 7/18 5,950 7/22 4,560 7/26 3,990 7/30 3,933 7/31 S3,990 $5,897 $9, 957 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. 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 $ 3,990 Per general ledger $ Deposits outstanding Service fees Checks outstanding 5,880 Bank balance per reconciliation Company balance per reconciliation

Answer 1

Bank Reconciliation
July 31,2021
Bank's Cash Balance		Company's Cash Balance
Per Bank Statement	3990	Per general ledger	5880
Deposits outstanding	2790	Company error	-400
Checks outstanding	-2340	Interest earned	57
		Office Supplies	-570
		NSF check	-470
		Service fees	-57
Bank balance per reconciliation	4440	Company balance per reconciliation	4440

Workings:
Checks outstanding:
534	970
535	1370
Checks outstanding	2340
Company error (check 533)	400	=4600-4200