Question

Chapter 06 Homework i Saved Required information [The following information applies to the questions displayed below.) Part 1 of 2 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, its Cash account shows an $15,714 debit balance. Del Gato Clinic's June 30 bank statement shows $15,860 on deposit in the bank. points a. Outstanding checks as of June 30 total $2,933. b. The June 30 bank statement lists a $70 bank service charge. c. 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. d. The June 30 cash receipts of $2,726 were placed in the bank's night depository after banking hours and were not recorded on the June 30 bank statement. eBook Hint Print Prepare a bank reconciliation for Del Gato Clinic using the above information: References DEL GATO CLINIC Bank Reconciliation June 30 Book balance Add: Bank statement balance Add: Deduct: Deduct: Adjusted bank balance Adjusted book balance
Please help with this 2 part question

Answer 1

Solution 1:

Del Gato Clinic
Bank Reconciliation
June 30,2017
Bank Statement Balance	$15,860	Cash Balance per Company's Records	$15,714
Add: Deposit in transit	$2,726	Add: Company error in recording check as 398 instead of 389	$9
	$18,586		$15,723
Less: Outstanding checks	$2,933	Less: Bank Service Charges	$70
Adjusted Bank Balance	$15,653	Adjusted Cash Balance	$15,653

Solution 2:

Journal Entries
S.No	Particulars	Debit	Credit
1	No journal entry required.
2	Miscellaneous Expenses	$70
	Cash		$70
	(To record bank service charges debited by bank)
3	Cash (398- 389)	$9
	Utilities expesnes		$9
	(To correct error in recording check for utility bill)
4	No journal entry required.