Question

Use the following information for the Exercises below. [The following information applies to the questions displayed below] Del Gato Clinic's cash account shows a $13,015 debit balance and its bank statement shows $11,989 on deposit at the close of business on June 30. a. Outstanding checks as of June 30 total $1,416. b. The June 30 bank statement lists a $65 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 $2,386 were placed in the bank's night depository after banking hours and were not recorded on the June 30 bank statement.

Answer 1

Adusting Entries

1. No Entry Required

2.

	Debit	Credit
Bank Serivce Charge	$                 65.00
Cash		$                   65.00

3

	Debit	Credit
Cash	$                   9.00
Utility Expense		$                     9.00

4. No entry required

		DEL GATO CLINIC
		Bank Reconciliation
		Jun-30
Bank statement balance		$                11,989	Book balance		$         13,015
Add:			Add:
Deposit of June 30	$                 2,386		Error on Check No. 919	$                         9
			( $ 298 (-) $ 289 )
		$                   2,386			$                    9
		$                14,375			$         13,024
Deduct:			Deduct:
Outstanding checks	$                 1,416		Bank service charge	$                       65
		$                   1,416			$                  65
Adjusted bank balance		$                12,959	Adjusted book balance		$         12,959