Question

Del Gato Clinic's cash account shows a $11,589 debit balance and its bank statement shows $10,555 on deposit at the close of business on June 30. Outstanding checks as of June 30 total $1,829. The June 30 bank statement lists a $16 bank service charge. 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. 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 its bank reconciliation using the above information.
DEL GATO CLINIC
Bank Reconciliation
June 30
Book balance
Add: Bank statement balance
Add:
Deduct: Deduct:
Adjusted bank balance Adjusted book balance

Answer 1

Answer:

Bank Reconciliation

Bank Statement Balance                                    10,555

Add: June 30 Deposit                                          2,856

                                                                              13,411

Less: Outstanding Checks                                 (1,829)

Adjusted bank balance                                     $11,582

Bank Reconciliation

Book Balance                                                            11,589

Add: Error in Check 919 (479 - 467)                                 9

                                                                                   11,598

Less: Bank service charge                                        (    16)

Adjusted book balance                                            11,582