Del Gato Clinic deposits all cash receipts on the day when they are received and

Question

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, 2013, its Cash account shows a $11,589 debit balance. Del Gato Clinic's June 30 bank statement shows $10,555 on deposit in the bank. a. Outstanding checks as of June 30 total $1,829. b. The June 30 bank statement included a $16 debit memorandum for bank services. c. Check No. 919, listed with the canceled checks, was correctly drawn for $467 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 $476. d. The June 30 cash receipts of $2,856 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 particular event, select "No journal entry required" in the first account field.)

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 particular event, select "No journal entry required" in the first account field.)

Explanation / Answer

a. Outstanding checks as of June 30 total $1,829
1,829 is subtracted from the bank balance. No journal entry necessary.

b.The June 30 bank statement included a $16 debit memorandum for bank services.
$16 should be subtracted from the company's cash balance.
Dr Bank Fees 16
Cr Cash 16

c. Check No. 919, listed with the canceled checks, was correctly drawn for $467 in payment of a utility bill on June 15. Austin Clinic mistakenly recorded it with a debit to Utilities Expense and a credit to Cash in the amount of $467.
$9 should be added to the company's cash account.
Dr Cash 9
Cr Utilities Expense 9  

d. The June 30 cash receipts of $2,856 were placed in the bank's night depository after banking hours and were not recorded on the June 30 bank statement
$2,856 should be added to the bank bank statement balance. No journal entry necessary.

The bank statement and company cash account should now balance at 11,582

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.