Question

Required information [The following information applies to the questions displayed below.) Del Gato Clinic's cash account shows a $12,724 debit balance and its bank statement shows $12,544 on deposit at the close of business on June 30. a. Outstanding checks as of June 30 total $2,216. b. The June 30 bank statement lists a $40 bank service charge. c. 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. d. The June 30 cash receipts of $2,365 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.)

Answer 1

Transaction	General Journal	Debit	Credit
a	"No journal entry is required"
	When preparing bank reconciliation statement,Bank statement side is deducted : " Outstanding checks $2,216 "
b	Miscellaneous Expenses	40
	Cash		40
	When preparing bank reconciliation statement, Book balance side is deducted as bank service charge $40.
c	Cash(698-689)	9
	Utilty expense		9
	The above entry is passed to correct the journal entry passed . When preparing bank reconciliation statement, Book balance side is added "Error on Check no.919 $9 "
d	"No journal entry is required"
	When preparing bank reconciliation statement,Bank statement side is added : "Deposit of June 30 - $2,365 "