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.
Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter5: Cash Control Systems
Section5.2: Bank Reconciliation
Problem 1OYO
Related questions
Question
Transcribed Image Text: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
(includes $320 in interest)
(4,320
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.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning