Austin Clinic deposits all cash receipts on the day when they are received and i

Question

Austin 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, 2011, its Cash account shows an $15,671 debit balance. Austin Clinic's June 30 bank statement shows $15,382 on deposit in the bank. Preparea bank reconciliation for Austin Clinic using the following information:. (Do not use a minus sign if your selection is to "Deduct" an item. Omit the "$" sign in your response) a. Outstanding checks as of June 30 total $2,700 The June 30 bank statement included a $65 debit memorandum for bank services b. c. Check No. 919, listed with the canceled checks, was correctly drawn for $489 in payment of a utility bill on June 15. Austin Clinic mistakenly recorded it with a debit to Utilities Expense and a credit to Cash in the amount of $498 d. The June 30 cash receipts of $2,933 were placed in the bank's night depository after banking hours and were not recorded on the June 30 bank statement AUSTIN CLINIC Bank Reconciliation June 30, 2011 Bank statement balance Book balance (Click to select) (Click to select) Click to select) Click to select) (Click to select) Click to select) Click to select) Click to select) Adjusted bank balance Adjusted book balance

Explanation / Answer

Bank account as per books item Checks Deposits Balance Closing balance 15671 Correction of check 919 9 15680 Service charge 65 15615 Adjusted book balance 15615 Bank balance as per statement 15382 Reconciliation items: Outstanding checks 2700 12682 Deposit in transit 2933 15615 Adjusted bank balance 15615

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