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.

Answer 1

Answer:

Adjusted bank balance $11,582

Adjusted book balance $11,582

Step-by-step explanation:

Preparation of bank reconciliation statements

DEL GATO CLINIC Bank Reconciliation

June 30

Bank statement balance $10,555

Add: Bank deposit $2,856

Total $13,411

Deduct: Outstanding checks $1,829

Adjusted bank balance $11,582

($13,411-$1,829)

DEL GATO CLINIC Bank Reconciliation

June 30

Book balance $11,589

Add: Error in check $9

($467-$476)

Deduct: Bank charges$16

Adjusted book balance $11,582

($11,589+$9-$16)

Therefore Adjusted bank balance will be $11,582 while Adjusted book balance will be $11,582