Required information

Problem 4-3B Prepare the bank reconciliation and record cash adjustments (LO4-5)

Skip to question

[The following information applies to the questions displayed below.]

The cash records and bank statement for the month of July for Glover Incorporated are shown below.

GLOVER INCORPORATED

Cash Account Records

July 1, 2021, to July 31, 2021

Cash Balance

Cash Balance

July 1, 2021

+

Cash Receipts

Cash Disbursements

=

July 31, 2021

$7,110

$8,420

$9,160

$6,370

Cash Receipts

Cash Disbursements

Date

Desc.

Amount

Date

Check#

Desc.

Amount

7/9

Sales

$

2,560

7/7

531

Rent

$

1,500

7/21

Sales

3,140

7/12

532

Salaries

1,960

7/31

Sales

2,720

7/19

533

Equipment

3,500

7/22

534

Utilities

900

7/30

535

Advertising

1,300

$

8,420

$

9,160

P.O. Box 123878

FIDELITY UNION

Member FDIC

Gotebo, OK 73041

You Can Bank On Us

(580) 377-OKIE

Account Holder:

Glover Incorporated

Account Number:

2252790471

519 Main Street

Gotebo, OK 73041

Statement Date:

July 31, 2021

Beginning Balance

Deposits and Credits

Withdrawals and Debits

Ending Balance

July 1, 2021

NO.

Total

NO.

Total

July 31, 2021

$7,700

3

$5,750

7

$ 8,800

$ 4,650

Deposits and Credits

Withdrawals and Debits

Daily Balance

Date

Amount

Desc.

Date

No.

Amount

Desc.

Date

Amount

7/10

$

2,560

DEP

7/2

530

$

590

CHK

7/2

$

7,110

7/22

3,140

DEP

7/10

531

1,500

CHK

7/10

8,170

7/31

50

INT

7/14

532

1,960

CHK

7/14

6,210

7/18

400

NSF

7/18

5,810

7/22

533

3,800

CHK

7/22

5,150

7/26

500

EFT

7/26

4,650

7/30

50

SF

7/30

4,600

7/31

$

4,650

$

5,750

$

8,800

Desc.	DEP Customer deposit	INT Interest earned	SF Service fees
	NOTE Note collected	CHK Customer check	NSF Nonsufficient funds
	EFT Electronic funds transfer

Additional information:

The difference in the beginning balances in the companys records and the bank statement relates to check #530, which is outstanding as of June 30, 2021.

Check #533 is correctly processed by the bank.

The EFT on July 26 relates to the purchase of office supplies.

Problem 4-3B Part 1

Required:

1. Prepare a bank reconciliation for Glovers checking account on July 31, 2021. (Amounts to be deducted should be indicated with a minus sign. Total entries to the same account together when entering in the bank reconciliation.)

1. Prepare a bank reconciliation for Glover's checking account on July 31, 2021. (Amounts to be deducted should be indicated with a minus sign. Total entries to the same account together when entering in the bank reconciliation.)