Question

Required information [The following information applies to the questions displayed below.) 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, 2017, its Cash account shows an $16,627 debit balance. Del Gato Clinic's June 30 bank statement shows $16,427 on deposit in the bank a. Outstanding checks as of June 30 total $2,243 b. The June 30 bank statement lists a $80 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 $2,372 were placed in the bank's night depository after banking hours and were not recorded on the June 30 bank statement.

Answer 1

Solution:

Del Gato Clinic
Bank Reconciliation - June 30
Bank's Cash balance		Company's cash balance
Particulars	Amount	Particulars	Amount
Ending balance as per Bank Statements	$16,427.00	Ending Balance as per cash books	$16,627.00
Additions:		Additions:
Outstanding cash receipt	$2,372.00	Incorrect recording of check 919	$9.00
Deductions:		Deductions:
Outstanding Checks	$2,243.00	Service Charge	$80.00
Up to date cash balance as per bank	$16,556.00	Up to date cash balance as per books	$16,556.00

Journal Entries - Del Gato Clinic
Date	Particulars	Debit	Credit
a	No Journal Entry Required
b	Miscellenous Expenses Dr	$80.00
	To Cash		$80.00
	(Being service charges debited by bank)
c	Cash Dr	$9.00
	To Utilities Expense		$9.00
	(To record correction entry for check no 919)
d	No Journal Entry Required