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.

Answer 1

Bank reconciliation:

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Explanation:

Bank statement balance Add: 9 DEL GATO CLINIC Bank Reconciliation June, 30 $ 12,544 Book Balance $ 12,724 Add: Check No. 919 was added with amount $ $698 instead of $689 (Excess amount added back) $ 9 Deduct: $ 2,216 Bank Service Charges $ 40 Cash Receipts Not yer Deposited in Bank $ 2,365 $ 2,216 $ 2,405 $ 10,328 Adjusted book balance $ 10,328 $ Deduct: Outstanding Checks Adjusted bank balance

1. Outstnading checks are deducted from Bank statement as same will be paid from bank statements once they get cleared.

2. Check No. 919 was recorded with $698 instead of $689, this excess credit of $9 was reversed by adding back $9 to balance of book.

3. Bank finance charges were deducted from book balance as same shall be recorded in books from statement.

4. Undeposited cash in night depository is yet to be reflected in bank , hence deducted from book balance.