Del Gato Clinic's cash account shows a $15,307 debit balance and its bank statement shows $13,567 on deposit at the close of business on June 30. Outstanding checks as of June 30 total $1,199. The June 30 bank statement lists a $15 bank service charge. Check No. 919, listed with the canceled checks, was correctly drawn for $389 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 $398. The June 30 cash receipts of $2,933 were placed in the bank's night depository after banking hours and were not recorded on the June 30 bank statement. 1. Prepare its bank reconciliation using the above information.

Question

Business

Miah Henderson

11 January, 11:03

Del Gato Clinic's cash account shows a $15,307 debit balance and its bank statement shows $13,567 on deposit at the close of business on June 30. Outstanding checks as of June 30 total $1,199. The June 30 bank statement lists a $15 bank service charge. Check No. 919, listed with the canceled checks, was correctly drawn for $389 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 $398. The June 30 cash receipts of $2,933 were placed in the bank's night depository after banking hours and were not recorded on the June 30 bank statement. 1. Prepare its bank reconciliation using the above information.

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Answers (1)

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Tristan Ross · Answer 1

Answer and Explanation:

The preparation of the bank reconciliation is presented below:

Del Gato Clinic's

Bank reconciliation statement

June 30

Particulars Amount Particulars Amount

Bank cash balance $13,567 Company cash balance $15,307

Add: Deposits Add: Recording error $9

in transit $2,933

Less: Outstanding Less: service fee - $15

Check - $1,199

Bank balance Company balance

After reconciliation $15,301 After reconciliation $15,301

The recording error is come from

= $398 - $389

= $9

And we do the adjustment accordingly that increased and decreased the company cash and bank cash balance