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

ID: 2484623 • Letter: D

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 dose of business on June 30, 2015, its Cash account shows a(n) $14,089 debit balance. Del Gato Clinic's June 30 bank statement shows $12,353 on deposit in the bank. a. Outstanding checks as of June 30 total $1,113. b. The June 30 bank statement induded a $15 debit memorandum for bank services. c. Check No 919, listed with the canceled checks, was correcUy drawn for $689 in payment of a utility bill on June 15. Del Gato Clinic mistakenly recorded it with a debit to Utilites Expense and a credit to Cash in the amount of $898. d. The June 30 cash recepts of $2,843 were placed in the bank's night depository after banking hours and wore not recorded on the June 30 bank statement.

Explanation / Answer

Del Gato Clinic

Bank Reconcilation

June 30 2015

Bank Statement Balance

12353

Book Balance

14089

Add

Add

Deposit of June 30

2843

Record error on checks

9

2843

9

15196

14098

Deduct

Deduct

Out standing checks

1113

Bank Service Charges

15

1113

15

Adjusted Bank Balance

14083

Adjusted Bank Balance

14083

Del Gato Clinic

Bank Reconcilation

June 30 2015

Bank Statement Balance

12353

Book Balance

14089

Add

Add

Deposit of June 30

2843

Record error on checks

9

2843

9

15196

14098

Deduct

Deduct

Out standing checks

1113

Bank Service Charges

15

1113

15

Adjusted Bank Balance

14083

Adjusted Bank Balance

14083

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