Question

Del Gato Clinic deposits all cash receipts on the day when they are received and it makes all cash payments by check. At the close of business on June 30, 2017, its Cash account shows an $14,422 debit balance. Del Gato Clinic’s June 30 bank statement shows $14,535 on deposit in the bank.

1. Outstanding checks as of June 30 total $2,407.
2. The June 30 bank statement lists a $60 service charge.
3. Check No. 919, listed with the canceled checks, was correctly drawn for $889 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 $898.
4. The June 30 cash receipts of $2,243 were placed in the bank’s night depository after banking hours and were not recorded on the June 30 bank statement.

Exercise 8-9 Bank reconciliation LO P3

Prepare a bank reconciliation for Del Gato Clinic using the above information:

Answer 1

Bank Reconciliation Statement:
Balance as per Bank Statement				14535	Balance as per Books			14422
Add:					Add:
Deposits in transit				2243	Error in check recording			9
Sub-total				16778	Sub-Total			14431
Less:					Less:
Outstanding checks				2407	Service charges			60
Adjusted balance as per bank Statement				14371	Adjusted balance as per Books			14371