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, its Cash account shows an $13,529 debit balance. Del Gato Clinic's June 30 bank statement shows $13,934 on deposit in the bank. a. Outstanding checks as of June 30 total $2,970. b. The June 30 bank statement lists a $80 bank service charge. c. Check No. 919, listed with the canceled checks, was correctly drawn for $289 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 $298. d. The June 30 cash receipts of $2,494 were placed in the bank's night depository after banking hours and were not recorded on the June 30 bank statement. Exercise 6-10 Bank reconciliation LO P3 Prepare a bank reconciliation for Del Gato Clinic using the above information: DEL GATO CLINIC Bank Reconciliation June 30 Book balance Add: Bank statement balance Add: TU Deduct: Deduct / Adjusted bank balance Adjusted book balance

Answer 1

Bank Reconciliation
Bank Statement Balance		13,934	Book Balance		13,529
Add:			Add:
Deposits not recorded	2,494	2,494	Error in recording	9	9
Deduct:			Deduct:
Outstanding checks	2,970	2,970	Service charge	80	80
Adjusted Bank Balance		13,458	Adjusted Book Balance		13,458

Errors and omissions in books are corrected in the books and omissions in bank statement in bank statement