Required information The following information applies to the questions displaye

Question

Required information The following information applies to the questions displayed below 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 $11,589 debit balance. Del Gato Clinic's June 30 bank statement shows $10,555 on deposit in the bank. a. Outstanding checks as of June 30 total $1,829 b. The June 30 bank statement lists a $16 service charge. c. Check No. 919, listed with the canceled checks, was correctly drawn for $467 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 $476. d. The June 30 cash receipts of $2,856 were placed in the bank's night depository after banking hours and were not recorded on the June 30 bank statement. Prepare a bank reconciliation for Del Gato Clinic using the above information: DEL GATO CLINIC Bank Reconciliation June 30, 2017 Bank statement balance Book balance Add Add: Deduct: Deduct: Adjusted bank balance Adjusted book balance

Explanation / Answer

              Bank Reconciliation Bank Statement balance 10,555 Book balance 11,589 Add: Add: Deposits in transit 2,856 Error in recoding chq 9 2,856 9 13,411 11,598 Deduct: Deduct: Checks oustanding 1,829 Service charge 16 1,829 16 Adjusted bank balance 11,582 Adjusted book balance 11,582 No entry required for deposits in transit and outstanding checks Transaction General Journal Debit Credit 3) Cash 9 Utility expense 9 4) Service charge/Misc expense 16 cash 16

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