Question

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

GLOVER INCORPORATED Cash Account Records July 1, 2018, to July 31, 2018
Cash Balance July 1, 2018	+	Deposits		–	Checks	=	Cash Balance July 31, 2018
$6,790		$8,180			$8,040		$6,930

Deposits				Checks
Date	Desc.	Amount		Date	No.	Desc.	Amount
7/9	Sales	$ 2,480		7/7	531	Rent	$ 1,420
7/21	Sales	3,060		7/12	532	Salaries	1,880
7/31	Sales	2,640		7/19	533	Equipment	2,700
				7/22	534	Utilities	820
				7/30	535	Advertising	1,220
		$ 8,180					$ 8,040

P.O. Box 123878   Gotebo, OK 73041   (580) 377-OKIE		FIDELITY UNION You Can Bank On Us					Member FDIC
Account Holder:		Glover Incorporated     519 Main Street     Gotebo, OK 73041			Account Number: Statement Date:		2252790471 July 31, 2018

Beginning Balance		Deposits and Credits				Withdrawals and Debits		Ending Balance
July 1, 2018		No.	Total			No.	Total	July 31, 2018
$ 7,300		3	$ 5,582			7	$ 7,592	$ 5,290

Deposits and Credits				Withdrawals and Debits					Daily Balance

Date	Amount	Desc.	Date	No.	Amount	Desc.	Date	Amount
7/10	$ 2,480	DEP	7/2	530	$    510	CHK	7/2	$ 6,790
7/22	3,060	DEP	7/10	531	1,420	CHK	7/10	7,850
7/31	42	INT	7/14	532	1,880	CHK	7/14	5,970
			7/18		320	NSF	7/18	5,650
			7/22	533	3,000	CHK	7/22	5,710
			7/26		420	EFT	7/26	5,290
			7/30		42	SF	7/30	5,248
	$ 5,582				$ 7,592		7/31	$ 5,290

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:

a. 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, 2018.
b. Check #533 is correctly processed by the bank.
c. The EFT on July 26 relates to the purchase of office supplies.

2. Record the necessary cash adjustments. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
  

Record the entries that increase and decrease cash

Answer 1

Refer to the below image for the above mentioned requirements in a detailed way of solution.