Harrison Company maintains a checking account at the First National City Bank. The bank provides a bank statement along with canceled checks on the last day of each month. The July 2018 bank statement included the following information: Balance, July 1, 2018 $ 57,053 Deposits 180,600 Checks processed (193,710 ) Service charges (30 ) NSF checks (1,750 ) Monthly loan payment deducted directly by bank from account (includes $970 in interest) (3,870 ) Balance, July 31, 2018 $ 38,293 The company’s general ledger account had a balance of $40,293 at the end of July. Deposits outstanding totaled $7,400 and all checks written by the company were processed by the bank except for those totaling $8,530. In addition, a $3,100 July deposit from a credit customer was recorded as a $310 debit to cash and credit to accounts receivable, and a check correctly recorded by the company as a $30 disbursement was incorrectly processed by the bank as a $300 disbursement. Required:
1. Prepare a bank reconciliation for the month of July.
2. Prepare the necessary journal entries at the end of July to adjust the general ledger cash account.