Harrison Company maintains a checking account at the First National City Bank. T

Question

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 2018 bank statement included the following information Balance, July 1, 2018 $ 58,053 181,400 Deposits Checks processed Service charges NSF checks Monthly loan payment deducted directly by bank from account (194,510) (70) (2,150) (4,270) (includes $270 in interest Balance, July 31, 2018 $ 38,453 The company's general ledger account had a balance of $41,653 at the end of July. Deposits outstanding totaled $8,200 and all checks written by the company were processed by the bank except for those totaling $8,610. In addition, a $3,900 July deposit from a credit customer was recorded as a $390 debit to cash and credit to accounts receivable, and a check correctly recorded by the company as a $70 disbursement was incorrectly processed by the bank as a $700 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 1Required 2 Prepare a bank reconciliation for the month of July Bank Balance to Corrected Balance Balance per bank statement

Explanation / Answer

Part 1 - Corrected balances as per bank

Corrected bank balance as per books

Part 2 - Journal to record the entries to adjust cash account

Particulars Corrected Bank balance as per bank Balance on 31st July $38453 Add : deposits in transit $8200 Less : Outstanding check $8610 Add : corrction entry ($700 was passed in bank instead of $70) hence bank balance is understated by $630 hence to level up add this amount $630 Corrected bank balance as per bank $38673

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