Question

Required information [The following information applies to the questions displayed below.) Del Gato Clinic's cash account shows a $12,827 debit balance and its bank statement shows $12,135 on deposit at the a. Outstanding checks as of June 30 total $1,769. b. The June 30 bank statement lists a $70 bank service charge. c. Check No. 919, listed with the canceled checks, was correctly drawn for $689 in payment of a utility bill on June 15. Del Gato Clinic mistakenly recorded it with a debit to Utilities Expense and a credit to Cash in the amount of $698. d. The June 30 cash receipts of $2,400 were placed in the bank's night depository after banking hours and were not recorded on the June 30 bank statement. Prepare its bank reconciliation using the above information. DEL GATO CLINIC Bank Reconciliation Bank statement balance Add: Book balance Add: Deduct: Deduct: Adjusted bank balance

Answer 1

DEL GATO CLINIC

Bank Reconciliation

June 30

Bank Statement balance		12135	Book balance		12827
Add:			Add:
Deposit in transit	2400		Error in Entry	9
		2400			9
Less:			Less:
Outstanding Check	-1769		Bank service charge	-70
		-1769			-70
Adjusted bank balance		12766	Adjusted book balance		12766