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, 2021, to July 31, 2021

Cash Balance

Cash Balance

July 1, 2021

+

Cash Receipts

−

Cash Disbursements

=

July 31, 2021

$7,510

$8,720

$10,560

$5,670

Cash Receipts

Cash Disbursements

Date

Desc.

Amount

Date

Check#

Desc.

Amount

7/9

Sales

$

2,660

7/7

531

Rent

$

1,600

7/21

Sales

3,240

7/12

532

Salaries

2,060

7/31

Sales

2,820

7/19

533

Equipment

4,500

7/22

534

Utilities

1,000

7/30

535

Advertising

1,400

$

8,720

$

10,560

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

$8,200

3

$5,960

7

$ 10,410

$ 3,750

Deposits and Credits

Withdrawals and Debits

Daily Balance

Date

Amount

Desc.

Date

No.

Amount

Desc.

Date

Amount

7/10

$

2,660

DEP

7/2

530

$

690

CHK

7/2

$

7,510

7/22

3,240

DEP

7/10

531

1,600

CHK

7/10

8,570

7/31

60

INT

7/14

532

2,060

CHK

7/14

6,510

7/18

500

NSF

7/18

6,010

7/22

533

4,900

CHK

7/22

4,350

7/26

600

EFT

7/26

3,750

7/30

60

SF

7/30

3,690

7/31

$

3,750

$

5,960

$

10,410

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:

1. 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.

2. Check #533 is correctly processed by the bank.

3. 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 cash

Answer 1

			Glover Incorporated
			Bank Reconciliation
			July 31,2021
Banks cash balance				Companys cash balance
per bank statement			3,750	per general ledger			5,670
Deposits outstanding			2,820	interest earned			60
				NSF check			-500
				Service fees			-60
				company error			-400
checks outstanding			-2400	office supplies			-600
Bank balance per reconciliation			4,170	company balance per reconciliation			4,170
	TR	General Journal				Debit	Credit
	1)	Cash				60
		interest earned					60
	2)	Accounts receivable				500
		Service fees				60
		Equipment				400
		office supplies				600
		cash					1560