Question

Required information (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, Cash Cash 2021 Receipts Disbursements July 31, 2021 $7,190 $8,480 $9,440 $6,230 Cash Receipts Cash Disbursements Date Desc. Amount Date Check Desc. Amount 7/9 Sales $ 2,580 7/7 531 Rent $1,520 7/21 Sales 3,160 7/12 532 Salaries 1,980 7/31 Sales 2,740 7/19 533 Equipment 3,700 7/22 534 Utilities 7/30 535 Advertising 1,320 $8,480 $ 9,440 920

Answer 1

Answer

1) Bank Reconcilition:

Glover Incorporated
Bank Reconcilition
July 31, 2021
Bank's Cash Balance	Company's Cash Balance
As per Bank Statement	$4290	as per General Ledger	$6230
Deposit Outstanding	$2740	Company error(Check No.533)	$-500
Checks Outstanding(Check no. 534,535)	$-2240	Interrest Earned	$52
		NSF Check	$-420
		Service Fees	$-52
		Office Supplies	$-520
After Reconcilition	$4790	After Reconcilition	$4790

2) Journal Entry of cash adjustment:

1	General Journal	Debit	Credit
	Cash	$52
	Interest revenue		$52
2	General Journal	Debit	Credit
	Accounts Receivable	$420
	Office Supplies	$520
	Service fee expense	$52
	Equipment	$500
	Cash		$1,492