Question
In: Accounting
El Gato Painting Company maintains a checking account at American Bank. Bank statements are prepared at...
El Gato Painting Company maintains a checking account at
American Bank. Bank statements are prepared at the end of each
month. The November 30, 2018, reconciliation of the bank balance is
as follows:
| Balance per bank, November 30 | $ | 3,391 | ||||
| Add: Deposits outstanding | 1,360 | |||||
| Less: Checks outstanding | ||||||
| #363 | $ | 139 | ||||
| #365 | 217 | |||||
| #380 | 72 | |||||
| #381 | 102 | |||||
| #382 | 250 | (780 | ) | |||
| Adjusted balance per bank, November 30 | $ | 3,971 | ||||
The company’s general ledger checking account showed the following
for December:
| Balance, December 1 | $ | 3,971 | ||
| Receipts | 44,250 | |||
| Disbursements | (43,453 | ) | ||
| Balance, December 31 | $ | 4,768 | ||
The December bank statement contained the following
information:
| Balance, December 1 | $ | 3,391 | |||
| Deposits | 44,600 | ||||
| Checks processed | (43,518 | ) | |||
| Service charges | (38 | ) | |||
| NSF checks | (600 | ) | |||
| Balance, December 31 | $ | 3,835 | |||
The checks that were processed by the bank in December include all
of the outstanding checks at the end of November except for check
#365. In addition, there are some December checks that had not been
processed by the bank by the end of the month. Also, you discover
that check #411 for $540 was correctly recorded by the bank but was
incorrectly recorded on the books as a $450 disbursement for
advertising expense. Included in the bank’s deposits is a $2,900
deposit incorrectly credited to the company’s account. The deposit
should have been posted to the credit of the Los Gatos Company. The
NSF checks have not been redeposited and the company will seek
payment from the customers involved.
Required:
1. Prepare a bank reconciliation for the El Gato
checking account at December 31, 2018.
2. Prepare any necessary adjusting journal entries
indicated.
Solutions
Expert Solution
| El Gato Painting Company | |||||
| Bank Reconciliation | |||||
| December 31, 2018 | |||||
| $ | |||||
| Cash Balance as per Bank Statement | 3,835 | ||||
| Add: | Deposits Outstanding | 3,910 | |||
| 7,745 | |||||
| Less: | Oustanding Cheque | 805 | |||
| Bank Error | 2,900 | ||||
| Adjusted Cash Balance as per Bank | 4,040 | ||||
| Cash Balance as per Books | 4,768 | ||||
| Less: | Service Charges | 38 | |||
| Error in recording Check #411 | 90 | ||||
| NSF Checks | 600 | ||||
| Adjusted Cash Balance as per Books | 4,040 | ||||
| Correct Balance for the cash account as of December 31, 2018 is $ 4,040 | |||||
| Calculations of Deposits Outstanding | |||||
| $ | $ | ||||
| Receipts | 44,250 | ||||
| Less : December receipt deposits | |||||
| Bank Deposits | 44,600 | ||||
| Less : Deposit Error | 2,900 | ||||
| Less : Last month deposits pending | 1,360 | 40,340 | |||
| Deposits in Transit , Dec 31 | 3,910 | ||||
| Calculations of Checks Outstanding | |||||
| Dec Disbursements | 43,453 | ||||
| Add : Error in recording check | 90 | ||||
| Less : December Checks Cleared | |||||
| Total checks cleared | 43,518 | ||||
| Less : Last Month's Checks cleared: | |||||
| #363 $ 139 | |||||
| #380 $ 72 | |||||
| #381 $ 102 | |||||
| #382 $ 250 | 563 | 42,955 | |||
| December check outstanding | 588 | ||||
| Add : Check # 365 | 217 | ||||
| Total checks Outstanding Dec 31 | 805 | ||||
| Journal Enteries | |||||
| In the Books of El Gato Painting Company | |||||
| Debit | Credit | ||||
| 1 | Advertisement Expenses | $ 90 | |||
| Cash | $ 90 | ||||
| ( Being Check for advertisement corrected) | |||||
| 2 | Sevice Charges | $ 38 | |||
| Cash | $ 38 | ||||
| ( Bank Service Charges Recorded) | |||||
| 3 | Accounts Receivable ( NSF Checks) | $ 600 | |||
| Cash | $ 600 | ||||
| ( NSF Check reccorded) | |||||
Thank You.
ekkarill92 answered 6 months agoRelated Solutions
El Gato Painting Company maintains a checking account at American Bank. Bank statements are prepared at...
El Gato Painting Company maintains a checking account at
American Bank. Bank statements are prepared at the end of each
month. The November 30, 2021, reconciliation of the bank balance is
as follows: Balance per bank, November 30 $ 3,421 Add: Deposits
outstanding 1,390 Less: Checks outstanding #363 $ 142 #365 220 #380
75 #381 105 #382 280 (822 ) Adjusted balance per bank, November 30
$ 3,989 The company’s general ledger checking account showed the
following for December: Balance,...
El Gato Painting Company maintains a checking account at American Bank. Bank statements are prepared at...
El Gato Painting Company maintains a checking account at
American Bank. Bank statements are prepared at the end of each
month. The November 30, 2021, reconciliation of the bank balance is
as follows:
Balance per bank, November 30
$
3,291
Add: Deposits outstanding
1,260
Less: Checks outstanding
#363
$
129
#365
207
#380
62
#381
92
#382
400
(890
)
Adjusted balance per bank, November 30
$
3,661
The company’s general ledger checking account showed the following
for December:
Balance,...
El Gato Painting Company maintains a checking account at American Bank. Bank statements are prepared at...
El Gato Painting Company maintains a checking account at
American Bank. Bank statements are prepared at the end of each
month. The November 30, 2021, reconciliation of the bank balance is
as follows:
Balance per bank, November 30
$
3,261
Add: Deposits outstanding
1,230
Less: Checks outstanding
#363
$
126
#365
204
#380
59
#381
89
#382
370
(848
)
Adjusted balance per bank, November 30
$
3,643
The company’s general ledger checking account showed the following
for December:
Balance,...
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El Gato Painting Company maintains a checking account at
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month. The November 30, 2016, reconciliation of the bank balance is
as follows:
Balance per bank,
November 30
$
3,371
Add: Deposits
outstanding
1,340
Less: Checks
outstanding
#363
$137
#365
215
#380
70
#381
100
#382
230
(752
)
Adjusted balance per
bank, November 30
$
3,959
The company’s general ledger
checking account showed the following for December:
Balance, December...
Gato Painting Company maintains a checking account at American Bank. Bank statements are prepared at the...
Gato Painting Company maintains a checking account at American
Bank. Bank statements are prepared at the end of each month. The
November 30, 2021, reconciliation of the bank balance is as
follows:
Balance per
bank, November 30
$
3,431
Add: Deposits
outstanding
1,400
Less: Checks
outstanding
#363
$
143
#365
221
#380
76
#381
106
#382
290
(836
)
Adjusted balance
per bank, November 30
$
3,995
The company’s general ledger checking account showed the following
for December:
Balance,
December...
Problem 7-14 (Algo) Bank reconciliation and adjusting entries [Appendix 7A] El Gato Painting Company maintains a...
Problem 7-14 (Algo) Bank reconciliation and adjusting entries
[Appendix 7A]
El Gato Painting Company maintains a checking account at
American Bank. Bank statements are prepared at the end of each
month. The November 30, 2021, reconciliation of the bank balance is
as follows:
Balance per bank, November 30
$
3,361
Add: Deposits outstanding
1,330
Less: Checks outstanding
#363
$
136
#365
214
#380
69
#381
99
#382
220
(738
)
Adjusted balance per bank, November 30
$
3,953
The company’s...
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Service charges -350
NSF checks -1,600
Monthly loan payment deducted
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The Fitzgerald Company maintains a checking account at the Bank of the North. The bank provides...
The Fitzgerald Company maintains a checking account at the Bank
of the North. The bank provides a bank statement along with
canceled checks on the last day of each month. The October 31,
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Deposits
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Checks processed
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Service charges
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NSF checks
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The...
The Fitzgerald Company maintains a checking account at the Bank of the North. The bank provides...
The Fitzgerald Company maintains a checking account at the Bank
of the North. The bank provides a bank statement along with
canceled checks on the last day of each month. The October 31,
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Balance, October 1, 2018
$
32,690
Deposits
86,000
Checks processed
(75,200
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Service charges
(350
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NSF checks
(1,600
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Monthly loan payment deducted
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(3,400
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Harrison Company maintains a checking account at the First National City Bank. The bank provides a...
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$
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Deposits
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Checks processed
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Service charges
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(includes $220 in interest)
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Balance, July 31, 2021
$
38,353...
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