Question

85) 6 Saved Help 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: $3,321 1,290 Balance per bank, November 30 Add: Deposits outstanding Less: Checks outstanding #363 #365 #380 #381 #382 Adjusted balance per bank, November 30 $ 132 210 65 95 430 as (932) $3,679 The company's general ledger checking account showed the following for December: Balance, December 1 Receipts Disbursements Balance, December 31 $ 3,679 43,550 (42,753) $ 4,476 The December bank statement contained the following information: Balance, December 1 Deposits Checks processed Service charges NSP checks Balance, December 31 $ 3,321 43,900 (42,818 (31) (530) $ 3,842

Answer 1

Credit Requirement (1) Bank Reconciliation Balance Per Bank Statement Add : Deposits Outstanding $ 3,842 Requirement (2) Event General Journal 1 Advertising Expense Miscellaneous Expense Accounts Receivable Cash Debit $ 90 $ 31 $ 530 $ 3,140 $ 651 Deduct: Bank Error Outstanding Checks $ 2,200 $ 957 (To Record Adjusint Entry) Corrected Cash Balance $ 3,825 Note : Please Comment down for any further clarifications. $ 4,476 Bank Balance Per Books Deduct: Error in Recording Check Service Charges NSF Checks $ $ $ 90 31 530 Corrected Cash Balance $ 3,825 Working Note : Deposits Outstanding Particulars Receipts Less : Bank Deposits (43900-1290-2200) Deposits Outstanding Amount $43,550 $ 40,410 $ 3,140 90 Outstanding Checks Particulars Amount December Disbursements $ 42,753 Add :Error in Recording Check 411 $ Add : Check 365 $ 210 Less : Checks Cleared (42818-132-65-95-430) $42,096 December checks outstanding $ 957