The cash records and bank statement for the month of July forJim Incorporated are shown below.
| JIM 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 | |
| $7,250 | | $9,370 | | | | | | $8,950 | | $7,670 | |
| Cash Receipts | | Cash Disbursements | |
| Date | | Desc. | Amount | | Date | No. | Desc. | | Amount | |
| 7/9 | | Sales | $ | 2,610 | | | 7/7 | 531 | Rent | | $ | 1,400 | | |
| 7/21 | | Sales | | 3,340 | | | 7/12 | 532 | Salaries | | | 1,950 | | |
| 7/31 | | Sales | | 3,420 | | | 7/19 | 533 | Equipment | | | 3,800 | | |
| | | | | | | | 7/22 | 534 | Utilities | | | 600 | | |
| | | | | | | | 7/30 | 535 | Advertising | | | 1,200 | | |
| | | | $ | 9,370 | | | | | | | $ | 8,950 | | |
|
| P.O. Box 123878 | RELIABLE UNION | | Member FDIC | | |
| Watonga, OK 73772 | You Can Bank On Us | | | | |
| (580) 377-OKIE | | | | | |
| Account Holder: | | Jim Incorporated | Account Number: | | 2252790471 | | |
| | | 519 Main Street | | | | | |
| | | Watonga, OK 73772 | Statement Date: | | July 31, 2021 | | |
| Beginning Balance | | Deposits and Credits | | Withdraws and Debits | | Ending Balance | | |
| July 1, 2021 | | No. | | Total | | No. | Total | | July 31, 2021 | | |
| $7,750 | | 3 | | $6,010 | | 7 | | $8,625 | | $5,135 | | |
| Deposits and Credits | | Withdraws and Debits | | Daily Balance | |
| Date | | Amount | | Desc. | | Date | | No. | | Amount | | Desc. | | Date | | Amount | |
| 7/10 | | $ | 2,610 | | | DEP | | 7/2 | | 530 | | | $ | 500 | | | CHK | | 7/2 | | $ | 7,250 | | |
| 7/22 | | | 3,340 | | | DEP | | 7/10 | | 531 | | | | 1,400 | | | CHK | | 7/10 | | | 8,460 | | |
| 7/31 | | | 60 | | | INT | | 7/14 | | 532 | | | | 1,950 | | | CHK | | 7/14 | | | 6,510 | | |
| | | | | | | | | 7/18 | | | | | | 300 | | | NSF | | 7/18 | | | 6,210 | | |
| | | | | | | | | 7/22 | | 533 | | | | 4,000 | | | CHK | | 7/22 | | | 5,550 | | |
| | | | | | | | | 7/26 | | | | | | 400 | | | EFT | | 7/26 | | | 5,150 | | |
| | | | | | | | | 7/30 | | | | | | 75 | | | SF | | 7/30 | | | 5,075 | | |
| | | $ | 6,010 | | | | | | | | | | $ | 8,625 | | | | | 7/31 | | $ | 5,135 | | |
|
| Desc. | | DEP Customer deposit | | INT Interest earned | | SF Service fees |
| | NOTE Note collected | | CHK Customer check | | NSF Non-sufficient funds |
| | EFT Electronic funds transfer | | | | |
Additional information:
- The difference in the beginning balances in the company'srecords and the bank statement relates to check #530, which isoutstanding as of June 30, 2021.
- Check #533 is correctly processed by the bank.
- The EFT on July 26 relates to the purchase of officesupplies.
Required:
1. Prepare a bank reconciliation for JimIncorporated's checking account on July 31, 2021. (Amountsto be deducted should be indicated with a minussign.)
2. Record the necessary cash adjustments.(If no entry is required for a transaction/event, select"No Journal Entry Required" in the first accountfield.)
