Question

Del Gato Clinic deposits all cash receipts on the day when they are received and it makes all cash payments by check. At the close of business on June 30, 2017, its Cash account shows an $14,022 debit balance. Del Gato Clinic’s June 30 bank statement shows $13,174 on deposit in the bank. Outstanding checks as of June 30 total $2,034. The June 30 bank statement lists a $90 service charge. Check No. 919, listed with the canceled checks, was correctly drawn for $689 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 $698. The June 30 cash receipts of $2,801 were placed in the bank’s night depository after banking hours and were not recorded on the June 30 bank statement.

Prepare the adjusting journal entries that Del Gato Clinic must record as a result of preparing the bank reconciliation. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

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

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

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

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

Answer 1

Del Gato Clinic's BRS 13174 Cash Balance according to books Add: 2801 Error (698 689) Cash Balance according to statement 14022 Add: Deposit in transit 9 15975 Less: Less:- Outstanding Checks 2034 Service charges 90 90 13941 Adjusted Balance Adjusted Balance 13941 Record the adjusting entry related to outstanding checks, if necessary. No entry Record the adjusting entry related to bank service charges, if necessary. Service fees 90 Cash 90 Record the adjusting entry related to Check No. 919, if necessary Cash 9 Utility exp Record the adjusting entry related to the June 30 deposit, if necessary No entry