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 NSF checks Monthly payment on note, deducted directly by bank from account (includes $370 in interest) Balance, July 31, 2024 $ 57,553 181,000 (194,110) (50) (1,950) (4,070) $ 38,373 The company's general ledger account had a balance of $40,973 at the end of July. Deposits outstanding totaled $7,800 and all checks written by the company were processed by the bank except for those totaling $8,570. In addition, a $3,500 July deposit from a credit customer was recorded as a $350 debit to cash and credit to accounts receivable, and a check correctly recorded by the company as a $50 disbursement was incorrectly processed by the bank as a $500 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.

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 NSF checks Monthly payment on note, deducted directly by bank from account (includes $370 in interest) Balance, July 31, 2024 $ 57,553 181,000 (194,110) (50) (1,950) (4,070) $ 38,373 The company's general ledger account had a balance of $40,973 at the end of July. Deposits outstanding totaled $7,800 and all checks written by the company were processed by the bank except for those totaling $8,570. In addition, a $3,500 July deposit from a credit customer was recorded as a $350 debit to cash and credit to accounts receivable, and a check correctly recorded by the company as a $50 disbursement was incorrectly processed by the bank as a $500 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.

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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