Accounting 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: Balance, July 1, 2021 $ 58,178 Deposits 181,500 Checks processed (194,610) Service charges (75 NSF checks (2,200 Monthly payment on note, deducted directly by bank from account (4,320 (includes $320 in interest) Balance, July 31, 2021 $ 38,473 The company's general ledger account had a balance of $41,823 at the end of July. Deposits outstanding totaled $8,300 and all checks written by the company were processed by the bank except for those totaling $8,620. In addition, a $4,000 July deposit from a credit customer was recorded as a $400 debit to cash and credit to accounts receivable, and a check correctly recorded by the company as a $75 disbursement was incorrectly processed by the bank as a $750 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.

Accounting 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: Balance, July 1, 2021 $ 58,178 Deposits 181,500 Checks processed (194,610) Service charges (75 NSF checks (2,200 Monthly payment on note, deducted directly by bank from account (4,320 (includes $320 in interest) Balance, July 31, 2021 $ 38,473 The company's general ledger account had a balance of $41,823 at the end of July. Deposits outstanding totaled $8,300 and all checks written by the company were processed by the bank except for those totaling $8,620. In addition, a $4,000 July deposit from a credit customer was recorded as a $400 debit to cash and credit to accounts receivable, and a check correctly recorded by the company as a $75 disbursement was incorrectly processed by the bank as a $750 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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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