Question

The following information applies to the questions displayed below] Del Gato Clinic's cash account shows an $16,732 debit balance and its bank statement shows $15,965 on deposit at the close of business on June 30 . a. Outstanding checks as of June 30 total $1,954. 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 $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 $2,690 were placed in the bank's night depository after banking hours and were not recorded on the June 30 bank statement. Prepare any necessary journal entries that Del Gato Cinic must reçord 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.) Journal entry worksheet 4 Record the adfusting entry related to outstanding checks, if necessary, hosut fruer cehats before cresta.

Answer 1

Del Gato Clinic must make several journal entries as a result of the bank reconciliation, including recording outstanding checks, a bank service charge, correcting a recording error, and recording cash receipts not on the bank statement.

Step-by-step explanation:

The necessary journal entries that Del Gato Clinic must record as a result of preparing the bank reconciliation are as follows:

a. To record outstanding checks: Debit Accounts Payable and Credit Cash.

b. To record the bank service charge: Debit Bank Service Charges Expense and Credit Cash.

c. To correct the recording error with Check No. 919: Debit Accounts Payable and Credit Cash.

d. To record the cash receipts not recorded on the bank statement: Debit Cash and Credit Accounts Receivable.

Answer 2

The required journal entries for Del Gato Clinic include debiting Bank Service Charge expense and crediting Cash for $40 due to bank service charges, and correcting a check recording error by debiting Cash for $9 and crediting Utilities Expense for $9.

Step-by-step explanation:

Journal Entry for Del Gato Clinic Bank Reconciliation

To prepare the necessary journal entries for Del Gato Clinic after their bank reconciliation, we need to consider the given adjustments:

No journal entry is required for outstanding checks as they are already reflected in the book balance.

For the bank service charge, the entry would be to debit the Bank Service Charge expense and credit Cash.

The error in recording Check No. 919 means we need to debit Cash for $9 (the difference between $598 and $589) and credit Utilities Expense for the same amount.

The cash receipts deposited after hours will need to be added to the book balance but they do not require an actual journal entry since they will be included in the next bank statement.

Therefore, the adjusting journal entries related to the bank service charge and the recording error for Check No. 919 would look like this:

Bank Service Charge Expense: debit $40

Cash: credit $40

Cash: debit $9

Utilities Expense: credit $9

No other entries are required as the other items do not affect the book balance right now.