Question

1. Del Gato Clinic's cash account shows a $13,510 debit balance and its bank statement shows $13,575 on deposit at the close of business on June 30.
Outstanding checks as of June 30 total $2,527.
The June 30 bank statement lists a $20 bank service charge.
Check No. 919, listed with the canceled checks, was correctly drawn for $289 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 $298.
The June 30 cash receipts of $2,451 were placed in the bank’s night depository after banking hours and were not recorded on the June 30 bank statement.
2. Del Gato Clinic's cash account shows a $13,510 debit balance and its bank statement shows $13,575 on deposit at the close of business on June 30.
Outstanding checks as of June 30 total $2,527.
The June 30 bank statement lists a $20 bank service charge.
Check No. 919, listed with the canceled checks, was correctly drawn for $289 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 $298.
The June 30 cash receipts of $2,451 were placed in the bank’s night depository after banking hours and were not recorded on the June 30 bank statement.
Required:
a. Record the adjusting entry related to outstanding checks, if necessary.
b. Record the adjusting entry related to bank service charges, if necessary.
c. Record the adjusting entry related to Check No. 919, if necessary.
d. Record the adjusting entry related to the June 30 deposit, if necessary.

Answer 1

Answer:

a. Record the adjusting entry related to outstanding checks, if necessary.

No adjusting entry is necessary for recording outstanding checks.

b. Record the adjusting entry related to bank service charges, if necessary.

June 30, 202x, bank fees expense

Dr Bank fees expense 20

    Cr cash 20

c. Record the adjusting entry related to Check No. 919, if necessary.

June 30, 202x, adjusting entry for mistake on recording Check No. 919

Dr Cash 9

    Cr utilities expense 9

d. Record the adjusting entry related to the June 30 deposit, if necessary.

No adjusting entry is necessary for recording deposits on transit.