Question

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Del Gato Clinic's cash account shows a $16,827 debit balance and its bank statement shows $15,971 on deposit at the close of business on June 30.

1. Outstanding checks as of June 30 total $2,010.
2. The June 30 bank statement lists a $75 bank service charge.
3. 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.
4. The June 30 cash receipts of $2,800 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.

Answer 1

Sol Information Given Cash account balance at the close of business on June 30. Banks Statement Balance at the close of business on June 30. Outstanding checks as of June 30 Bank service charge Check No. 919, listed with the canceled checks, was correctly drawn for $689 in payment of a utility bill Mistakenly recorded it with a debit to Utilities Expense Cash receipts-bank's night depository after banking hours $ $ $ $ 16,827 15,971 2,010 75 689 $ $ $ 698 2,800

$ Del Gato Clinic Bank Reconciliation Jun-30 Particulars Amount Remarks Cash account balance at the close of business on June 30. $ 16,827.00 We started with Cash Balance These were recorded in books as payments made but as they were still outstanding we will add back Add:Outstanding checks as of June 30 $ 2,010.00 to arraive at bank balance Since we have not recorded in bank charges now Less:Bank service charge $ -75.00 we will reduce to arraive at bank balance Since, Mistakenly entry $698 and this we have Add:Mistakenly recorded it with a debit to Utilities Expense $ 698.00 added back to rectify Less:Check No. 919, listed with the canceled checks, was correctly Since, we have not recorded the correct entry of drawn for $689 in payment of a utility bill -689.00 689, now we will reduce to arraive at Bank balance Since this deposit was not recorded by bank in the month of june we will reduce to arraive at bank Less: Cash receipts-bank's night depository after banking hours $ -2,800.00 balance Banks Statement Balance at the close of business on June 30. $ 15,971.00 $