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 $16,863 debit balance. Del Gato Clinic's June 30 bank statement shows $15,060 on deposit in the bank. a. Outstanding checks as of June 30 total $1,113 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 $889 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 $898 d. The June 30 cash receipts of $2,840 were placed in the bank's night depository after banking hours and were not recorded on the June 30 bank statement. Prepare a bank reconciliation for Del Gato Clinic using the above information: DEL GATO CLINIC Bank Reconciliation June 30, 2013 Bank statement balance Book balance Add Add Deduct Deduct Adjusted bank balance Adjusted book balance

Explanation / Answer

DEL GATO CLINIC Bank Reconciliation June 30, 2013 Bank Statement Company's Book Bank statement balance $ 15,060 Book balance $ 16,863 Add Additions Deposit in transit   $ 2,840 Utility bill payment wrongly entered excess $    9 $    2,840 $            9 Deductions Deductions Outstanding checks   $ 1,113 Bank service charges $ 85 $    1,113 $          85 Adjusted bank balance $ 16,787 Cash balance per reconciliation $ 16,787

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