Frederick Clinic deposits all cash receipts on the day when they are received an

Question

Frederick 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, 2011, its Cash account shows a $16,304 debit balance. Frederick Clinic's June 30 bank statement shows $16,333 on deposit in the bank. a. Outstanding checks as of June 30 total $2,717. b. The June 30 bank statement included a $85 debit memorandum for bank services. c. Check No. 919, listed with the canceled checks, was correctly drawn for $488 in payment of a utility bill on June 15. Frederick Clinic mistakenly recorded it with a debit to Utilities Expense and a credit to Cash in the amount of $498. d. The June 30 cash receipts of $2,613 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 Frederick Clinic must record as a result of preparing the bank reconciliation.? This is how I did it. Date. General Journal Debit Credit June 30 Account payable 85 Cash 85 Cash 10 Utilities Payable 10

Explanation / Answer

a. Outstanding checks as of June 30 total $2,700. 2,700 is subtracted from the bank balance. No journal entry necessary. b. The June 30 bank statement included a $65 debit memorandum for bank services. $65 should be subtracted from the company's cash balance. Dr Bank Fees 65 Cr Cash 65 c. Check No. 919, listed with the canceled checks, was correctly drawn for $489 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 $498. $9 should be added to the company's cash account. Dr Cash 9 Cr Utilities Expense 9 d. The June 30 cash receipts of $2,933 were placed in the bank's night depository after banking hours and were not recorded on the June 30 bank statement $2,933 should be added to the bank bank statement balance. No journal entry necessary.

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