Question

El Gato Painting Company maintains a checking account at American Bank, Bank statements are prepared at the end of each month. The November 30, 2021, reconciliation of the bank balance is as follows: $3,231 1,200 Balance per bank, November 30 Add: Deposits outstanding Less: Checks outstanding #363 #365 #380 #381 #382 Adjusted balance per bank, November 30 $123 201 56 86 340 (806) $3,625 The company's general ledger checking account showed the following for December: Balance, December 1 Receipts Disbursements Balance, December 31 $ 3,625 42,650 (41,853) $ 4,422

Answer 1

Solution 1:

EI Gato Painting company
Bank Reconciliation Statement
31-Dec-21
Particulars		Amount
Balance on bank statement		$3,851.00
Additions:
Outstanding Deposits ($42,650 - $43,000 + $1,200 + $1,300)	$2,150.00
Total Additions		$2,150.00
Deductions:
Outstanding checks($41,853 + $90 - $41,918 + $806)	$831.00
Bank Error	$1,300.00
Total Deductions		$2,131.00
Adjusted bank balance		$3,870.00
Balance in books		$4,422.00
Deductions:
Service Charge	$22.00
NSF Check	$440.00
Incorrect recording of check 411	$90.00
Total Deductions		$552.00
Adjusted book balance		$3,870.00

Solution 2:

Journal Entries - EI Gato Painting
Date	Particulars	Debit	Credit
31-Dec-21	Accounts receivables Dr	$440.00
	Miscellenous Expenses Dr	$22.00
	Advertising Expense Dr	$90.00
	To Cash		$552.00
	(To record NSF check, service charge and correction entry for check no 411)