Question

ter 8 Homework Mnatap Cengige Louring Oper A Now Microser werd Dcum , Ard Homework 0 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 $15,258 debit balance. Del Gato Clinic's June 30 bank statement shows $14,159 on deposit in the bank. a. Outstanding checks as of June 30 total $1,287. b. The June 30 bank statement lists a $15 service charge. Check No. 919, listed with the canceled checks, was correctly drawn for $589 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 $598. d. The June 30 cash receipts of $2,380 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.) View transaction list Journal entry worksheet 1 2 3 4 Record the adjusting entry related to outstanding checks, if necessary. Note: Enter b ore Transaction General Journal Debit Credit < Prey 8 ot7 0 Next >

Answer 1

BRS will be prepared in following manner:

Del Gato Clinic
BRS as on 30th June, 2017
Particulars	Amount
Balance as per books	$             15,258
Checks not presented in bank for payment	$               1,287
Bank charges not recorded in books of accounts	$                   (15)
Rectification entry for check no. 919	$                       9
June 30 cash deposits, not recorded by bank	$             (2,380)
Balance as per bank statement	$             14,159

Following journal entries Del Gato Clinic must record as a result of preparing BRS:

Sr. No.	Date	Account titles and explanation	Debit	Credit
a.		No Journal entry required
b.	June 30, 2017	Bank / Service Charges	$                  15
		To Bank / Cash A/c		$                  15
		(being bank charges recorded)
c.	June 15, 2017	Bank / Cash A/c	$                     9
		To Utilities Expenses		$                     9
		(being rectification entry for check no. 919 issued for $ 589 recorded for $ 598)
d.		No Journal entry required

Explanation for:

a. Checks for $ 1,287 are yet not presented in bank for payment, this item will appear in BRS but no adjustment entry is required as whenever these checks will be presented in bank, it will appear in statement then. Checks are already issued to payee so it is bound to be recorded in the books of accounts.

b. Service charges are not recorded in books to accounts which are identified while preparing BRS. Adjustment entry is to be recorded to account these charges in accounts so as to eliminate the difference between bank balance as per books and balance as per bank statement.

c. Check no. 919 issued for $ 589 is recorded for $ 598 in books of accounts. This is an error and it is required to be corrected in the books of accounts so as to eliminate the difference between bank balance as per books and balance as per bank statement. Difference of $ 9 is to be recorded by making adjustment entry in the books of accounts.

d. Cash receipts of $ 2,380 were placed in depository after banking hours and were not recorded on the June 30 bank statement. No adjustment entry is required for this as cash receipts are received and recorded in books of accounts and the same will get recorded in the bank statement on the very next working day. No adjustment is required in books of accounts.