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 $15,141 debit balance. Frederick Clinic's June 30 bank statement shows $14,275 on deposit in the bank.

Prepare a bank reconciliation for Frederick Clinic using the following information:

The June 30 bank statement included a $125 debit memorandum for bank services.

Check No. 919, listed with the canceled checks, was correctly drawn for $645 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 $654.

The June 30 cash receipts of $3,250 were placed in the bank's night depository after banking hours and were not recorded on the June 30 bank statement.

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 $15,141 debit balance. Frederick Clinic's June 30 bank statement shows $14,275 on deposit in the bank.

Prepare a bank reconciliation for Frederick Clinic using the following information:

Explanation / Answer

At the close of business on June 30, 2011, its Cash account shows a $15,141 debit balance.
b. The June 30 bank statement included a $125 debit memorandum for bank services
Subtract from Cash account
Dr Miscellaneous Expense 125
Cr Cash 125

c. Check No. 919, listed with the canceled checks, was correctly drawn for $645 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 $654.
Add $15 to Cash account
Dr Cash 9
Cr Utilities Expense 9

15,141 - 125 + 9 = $15,025 Cash balance

Frederick Clinic's June 30 bank statement shows $14,275 on deposit in the bank.

a. Outstanding checks as of June 30 total $2,500.
Subtract from bank statement

d. The June 30 cash receipts of $3,250 were placed in the bank's night depository after banking hours and were not recorded on the June 30 bank statement.
Add to bank statement

14,275 - 2,500 + 3,250 = $15,025 bank statement balance

Pls rate :) :)

Related Questions

Navigate

• Browse (All)
• Browse F
• Subjects

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