Book July

June 30 Receipts Disbursement July 31

Beg. Bal ( 1,000,000) ( 4,000,000) ( 3,600,000) ( 1,400,000)
CM - Note Collected by bank:
June ( 300,000) ( (300,000)
July ( 500,000) ( 500,000)
DM - Service Charge:
June ( (4,000) ( (4,000)
July ( 1,000) ( (1,000)
DM - NSF
June ( (100,000) ( (100,000)
July ( - )
Adjusted book balance ( 1,196,000) ( 4,200,000) ( 3,497,000) ( 1,899,000)

Bank July
March 31 Receipts Disbursement April 30
Beg. Bal ( 1,650,000) ( 3,500,000) ( 2,500,000) ( 2,650,000)
Deposits in transit:
June ( 400,000) ( (400,000)
July (squeezed) ( 1,100,000) ( 1,100,000)
Outstanding checks:
June ( (854,000) ( (854,000)
July (squeezed) ( 1,851,000) ( (1,851,000)
Adjusted bank balance ( 1,196,000) ( 4,200,000) ( 3,497,000) ( 1,899,000)

DIT, beg ( 400,000)

Add: Total deposits (4,000,000-300,000) ( 3,700,000)
Less: deposits acknowledge by bank ((3,500,000 - 500,000) ( 3,000,000)
DIT, ending ( 1,100,000)

OC, beg ( 854,000)

Add: Total checks drawn (3,600,000-4,000-100,000) ( 3,496,000)
Less: checks paid by bank ((2,500,000-1,000) ( 2,499,000)
OC, end ( 1,851,000)

Note: only book reconciling item require adjusting entries.

1. To record the service charge
Service charge ( 1,000)
Cash in bank ( 1,000)

2. To record proceeds from bank loan

Cash in bank ( 500,000)
Note payable - bank 500,000