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 | ||||||||||||
| $7,350 | $8,600 | $10,000 | $5,950 | |||||||||||||||
| Cash Receipts | Cash Disbursements | |||||||||||||||||
| Date | Desc. | Amount | Date | Check# | Desc. | Amount | ||||||||||||
| 7/9 | Sales | $ | 2,620 | 7/7 | 531 | Rent | $ | 1,560 | ||||||||||
| 7/21 | Sales | 3,200 | 7/12 | 532 | Salaries | 2,020 | ||||||||||||
| 7/31 | Sales | 2,780 | 7/19 | 533 | Equipment | 4,100 | ||||||||||||
| 7/22 | 534 | Utilities | 960 | |||||||||||||||
| 7/30 | 535 | Advertising | 1,360 | |||||||||||||||
| $ | 8,600 | $ | 10,000 | |||||||||||||||
| 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 | ||||||||||||||||||||||
| $8,000 | 3 | $5,876 | 7 | $ 9,706 | $ 4,170 | ||||||||||||||||||||||
| Deposits and Credits | Withdrawals and Debits | Daily Balance | |||||||||||||||||||||||||
| Date | Amount | Desc. | Date | No. | Amount | Desc. | Date | Amount | |||||||||||||||||||
| 7/10 | $ | 2,620 | DEP | 7/2 | 530 | $ | 650 | CHK | 7/2 | $ | 7,350 | ||||||||||||||||
| 7/22 | 3,200 | DEP | 7/10 | 531 | 1,560 | CHK | 7/10 | 8,410 | |||||||||||||||||||
| 7/31 | 56 | INT | 7/14 | 532 | 2,020 | CHK | 7/14 | 6,390 | |||||||||||||||||||
| 7/18 | 460 | NSF | 7/18 | 5,930 | |||||||||||||||||||||||
| 7/22 | 533 | 4,400 | CHK | 7/22 | 4,730 | ||||||||||||||||||||||
| 7/26 | 560 | EFT | 7/26 | 4,170 | |||||||||||||||||||||||
| 7/30 | 56 | SF | 7/30 | 4,114 | |||||||||||||||||||||||
| 7/31 | $ | 4,170 | |||||||||||||||||||||||||
| $ | 5,876 | $ | 9,706 | ||||||||||||||||||||||||
| 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 company’s 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.
Required:
1. Prepare a bank reconciliation for Glover’s checking account on July 31, 2021.
| 1 | |||
| GLOVER INCORPORATED | |||
| Bank Reconciliation | |||
| July 31, 2021 | |||
| Bank's Cash Balance | Company's Cash Balance | ||
| Per Bank Statement | 4170 | Per general ledger | 5950 |
| Deposits outstanding | 2780 | Company error | -300 |
| Checks outstanding | -2320 | Interest earned | 56 |
| NSF check | -460 | ||
| Service fees | -56 | ||
| Office Supplies | -560 | ||
| Bank balance per reconciliation | 4630 | Company balance per reconciliation | 4630 |
| Workings: | |
| Checks outstanding: | |
| 534 | 960 |
| 535 | 1360 |
| Checks outstanding | 2320 |
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