Question

Del Gato Clinic's cash account shows a $14,675 debit balance and its bank statement shows $15,065 on deposit at the close of business on June 30.

1. Outstanding checks as of June 30 total $2,986.

2. The June 30 bank statement lists a $80 bank service charge.

3. Check No. 919, listed with the canceled checks, was correctly drawn for $389 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 $398.

4. The June 30 cash receipts of $2,525 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. 

Answer 1

DEL GATO CLINIC
Bank Reconciliation
June 30
Bank Statement Balance		15065	Book Balance		14675
Add: Bank Charges Not recorded in bookes		80	Add: Outstanding Checks		2986
Add: Check booked in cash		398
Add: Late Night Deposit		2525	Deduct: Bank service Charges		(80)
			Deduct: Check No. 919 mistakenly booked in cash		(389)
Deduct: Outstanding Checks		2986	Deduct: Late deposit of Cash		(2525)
Adjusted Bank Balance		15082	Adjusted Book Balance		14667