Required information [The following information applies to the questions display

Question

Required information [The following information applies to the questions displayed below.) 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, 2017, its Cash account shows an $16,326 debit balance. Del Gato Clinic's June 30 bank statement shows $16,651 on deposit in the bank. a. Outstanding checks as of June 30 total $2,870. b. The June 30 bank statement lists a $60 service charge. c. Check No. 919, listed with the canceled checks, was correctly drawn for $189 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 $198. d. The June 30 cash receipts of $2,494 were placed in the bank's night depository after banking hours and were not recorded on the June 30 bank statement. E Prepare the adjusting journal entries that Del Gato Clinic must record as a result of preparing the bank reconciliation. (If no entry is E required for a transaction/event, select "No journal entry required" in the first account field.)

Explanation / Answer

1. Company need not post any entry for its outstanding checks for the end of the year for bank reconciliation, because outstanding checks will be adjusted to the bank balance, so outstanding checks need not adjust to the cash account.

2. Entry in the case of bank charges debited by the banker but not recorded in the customer account :

so at the endo of the year, customer needs to post hte required entry i.e.,

Bank charges account -----------Dr $60

To Bank Account $60

3. Adjustment Entry for cancelled check with wrong amount:

Utility Expenses account Dr $198

To Cash Account $198

(because reversed the cancelled check entry with wrong amount i.e 198 instead of mentioning 189)

4. The june 30 cash reciepts of $ 2928were placed in the banks night depository after banking hours and were recorded on the june 30th bank statement

No entry is to be recorded.,

Related Questions

Navigate

• Browse (All)
• Browse R
• Subjects

---

---

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