Harrison Company maintains a checking account at First National City Bank. The bank provides a bank statement along with canceled checks on the last day of each month. The July 2016 bank statement included the following information:

Balance, July 1, 2016	ps	56,678
Deposits		180,300
checks processed		(193,410)
service charges		(70)
Cheques NSF		(1,600)
Monthly loan payment deducted directly by the bank from the account
(includes $620 interest)		(3,720)
Balance, July 31, 2016	ps	38,178

The company's general ledger account had a balance of $40,278 at the end of July. Deposits outstanding were $7,100, and all checks written by the company were processed by the bank except those totaling $8,500. In addition, a July deposit of $2,800 from a credit customer was recorded as a debit of $280 to cash and a credit to accounts receivable, and a check that was correctly recorded by the company as a disbursement of $70 was incorrectly processed by the bank as a payout of $700.

Required:

1.	Prepare a bank reconciliation for the month of July.

Answer rating: 100% (QA)

To prepare a bank reconciliation for the month of July we need to compare the companys records gener... View the full answer