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

ID: 2447297 • Letter: D

Question

Del Gato Clinic deposits all cashreceipts on the day when they are received and makes all cashpayments by check. At the close of business on June 30, 2008, itsCash account shows an $15,047, debit balance. Del GatoClinic’s June 30 bank statement shows $14,895 on deposit inthe bank on that day. Prepare a bank reconciliation for Del GatoClinic using the following information (Do not use a minussign if your selection is to "Deduct" an item. Omit the "$" sign inyour response):

a.

Outstanding checks as of June 30 total $2,579.

b.

The June 30 bank statement included a $95 debit memorandum forbank services.

c.

Check No. 919, listed with thecanceled checks, was correctly drawn for $589 in payment of autility bill on June 15. Del Gato Clinic mistakenly recorded itwith a debit to Utilities Expense and a credit to Cash in theamount of $598.

d.

The June 30 cash receipts of $2,645were placed in the bank’s night depository after bankinghours and were not recorded on the June 30 bank statement.

DEL GATO CLINIC
Bank Reconciliation
June 30, 2008

Bank statement balance

$

     (0%)

Book balance

$

     (0%)

Add (6%):

Deposit of June 30 (6%)

     (0%)

Add (6%):

Error on Ck. No. 919 (6%)

     (0%)

Sub-Total

     (0%)

Sub-Total

     (0%)

Deduct (6%):

Outstanding Checks (6%)

     (0%)

Deduct (6%):

Bank Service Charge (6%)

     (0%)

Adjusted bank balance

$

     (0%)

Adjusted book balance

$

     (0%)

a.

Outstanding checks as of June 30 total $2,579.

b.

The June 30 bank statement included a $95 debit memorandum forbank services.

c.

Check No. 919, listed with thecanceled checks, was correctly drawn for $589 in payment of autility bill on June 15. Del Gato Clinic mistakenly recorded itwith a debit to Utilities Expense and a credit to Cash in theamount of $598.

d.

The June 30 cash receipts of $2,645were placed in the bank’s night depository after bankinghours and were not recorded on the June 30 bank statement.

Explanation / Answer

DEL GATO CLINIC

Bank Reconciliation

June 30,2008

DEL GATO CLINIC

Bank Reconciliation

June 30,2008

Bank Statementbalance $14,895 Add       Depositof June 30 2645 $17,540 Less      Outstanding checks 2579 Adjusted Bankbalance $14,961 Book balance $15,047 Add       Error onck no. 919 9 $15,056 Less       Bankservice charges 95 Adjusted bookbalance $14,961
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