Reference no: EM133043456

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 2021 bank statement included the following information:

Balance, July 1, 2021 $57,678

Deposits 181,100

Checks processed (194,210)

Service charges (55)

NSF checks (2,000)

Monthly payment on note, deducted directly by bank from account (includes $120 in interest) (4,120)

Balance, July 31, 2021 $38,393

The company's general ledger account had a balance of $41,143 at the end of July. Deposits outstanding totaled $7,900 and all checks written by the company were processed by the bank except for those totaling $8,580. In addition, a $3,600 July deposit from a credit customer was recorded as a $360 debit to cash and credit to accounts receivable, and a check correctly recorded by the company as a $55 disbursement was incorrectly processed by the bank as a $550 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.