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 2024 bank statement included the following information: Balance, July 1, 2024 Deposits Checks processed Service charges NSP checks Monthly payment on note, deducted directly by bank from account (includes $620 in interest) Balance, July 31, 2024 $56,678 180,300 (193,410) (70) (1,600) (3,720) $ 38,178 The company's general ledger account had a balance of $40,278 at the end of July. Deposits outstanding totaled $7,100 and all checks written by the company were processed by the bank except for those totaling $8,500. In addition, a $2,800 July deposit from a credit customer was recorded as a $280 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. Use the miscellaneous expense account to record the bank service charges. Complete this question by entering your answers in the tabs below.
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 2024 bank statement included the following information: Balance, July 1, 2024 Deposits Checks processed Service charges NSP checks Monthly payment on note, deducted directly by bank from account (includes $620 in interest) Balance, July 31, 2024 $56,678 180,300 (193,410) (70) (1,600) (3,720) $ 38,178 The company's general ledger account had a balance of $40,278 at the end of July. Deposits outstanding totaled $7,100 and all checks written by the company were processed by the bank except for those totaling $8,500. In addition, a $2,800 July deposit from a credit customer was recorded as a $280 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. Use the miscellaneous expense account to record the bank service charges. Complete this question by entering your answers in the tabs below.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Hh1.
Account
Transcribed Image Text:View transaction list
Journal entry worksheet
1
Record the debits to cash revealed by the bank reconciliation.
Note: Enter debits before credits.
Event
Record entry
<
Show Transcribed Text
2
View transaction list
1
Journal entry worksheet
Event
2
General Journal
2
Note: Enter debits before credits.
Record entry
Clear entry
required for a transaction/event, select "No journal entry required" in the first account field.
Record the credits to cash revealed by the bank reconciliation.
Ć
J
General Journal
Clear entry
Debit
Credit
Debit
View general journal
Credit
>
View general journal
Transcribed Image Text: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 2024 bank statement included the following information:
Balance, July 1, 2024
Deposits
Checks processed
Service charges
NSP checks
Monthly payment on note, deducted directly by bank from account
(includes $620 in interest)
Balance, July 31, 2024
Complete this question by entering your answers in the tabs below.
Show Transcribed Text
Required 1 Required 2
The company's general ledger account had a balance of $40,278 at the end of July. Deposits outstanding totaled $7,100 and all
checks written by the company were processed by the bank except for those totaling $8,500. In addition, a $2,800 July deposit from a
credit customer was recorded as a $280 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 f July to adjust the general ledger cash account. Use the miscellaneous
expense account to record the bank service charges.
Ĉ
Bank Reconciliation
Bank Balance to Corrected Balance
Balance per bank statement
Add: Deposits outstanding
Add: Bank error in recording check
Corrected cash balance
Book Balance to Corrected Balance
Balance per books
Add: Bank error in recording check
Corrected cash balance
Prepare a bank reconciliation for the month of July.
$ 56,678
180,300
(193,410)
$
(70)
(1,600)
$
(3,720)
$ 38,178
$
42798
38,178
7,100
630
45,908
40,278
Required t
Required 2 >
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