Question

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.

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