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, 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, December 1 $ 3,989 Receipts 44,550 Disbursements (43,753 ) Balance, December 31 $ 4,786 The December bank statement contained the following information: Balance, December 1 $ 3,421 Deposits 44,900 Checks processed (43,818 ) Service charges (41 ) NSF checks (630 ) Balance, December 31 $ 3,832 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 $760 was correctly recorded by the bank but was incorrectly recorded on the books as a $670 disbursement for advertising expense. Included in the bank’s deposits is a $3,200 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, 2021. 2. Prepare any necessary adjusting journal entries indicated.
Solutions
Expert Solution
| i) | EI Gato painting Corp | ||
| Bank Reconciliation Statement | |||
| Month Ended December 31 | |||
| Cash Balance as per bank statement | 3832 | ||
| Add: Deposit Outstanding | 4240 | ||
| Less: BANK ERROR | -3200 | ||
| Less: Outstanding checks | -847 | ||
| Corrected Cash Balance | 4025 | ||
| Cash balance as per books | 4786 | ||
| Less: Bank Service charges | -41 | ||
| Error Rectification | -90 | ||
| NSF Checks | -630 | ||
| Corrected book Balance | 4025 | ||
| ii) | Journal enttry | ||
| Account NAME | Debit | Credit | |
| Advertisement Expense | 90 | ||
| Misc. Expense | 41 | ||
| Accounts Receivable | 630 | ||
| To bank | 761 | ||
| (being adjustment entry passed) | |||
| Note 1 | Receipts | 44550 | |
| Less: Dec receipt deposited | |||
| BANK DEPOSIT | 44900 | ||
| Less Deposit Error | -3200 | ||
| Less: prior Month deposit | -1390 | 40310 | |
| Deposit Outstanding | 4240 | ||
| Note 2 | Dec. Disbursement | 43753 | |
| Error in rec. check 411 | 90 | ||
| Less: Total checks proceesed-bank | 43818 | ||
| Prior Month checks | -602 | -43216 | |
| Dec check o/s | 627 | ||
| Add: check 365 | 220 | ||
| Total checks outstanding | 847 | ||
ekkarill92 answered 1 year 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
$
3,291
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,...
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, 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...
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. T
he October 31, 2016, bank statement included the following
information:
Balance, October 1, 2016 $ 32,690
Deposits 86,000
Checks processed -75,200
Service charges -350
NSF checks -1,600
Monthly loan payment deducted
directly by bank from account
(includes $400 in interest)
(3,400)...
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,
2016, bank statement included the following information:
Balance, October 1, 2016
$
32,590
Deposits
81,000
Checks processed
(70,200)
Service charges
(250)
NSF checks
(1,500)
Monthly loan payment deducted
directly by bank from
account
(includes $300 in
interest)
(2,300)
Balance, October 31, 2016
$
39,340
The...
Harrison Company maintains a checking account at the First National City Bank. The bank provides a...
Harrison Company maintains a checking account at the
First National City Bank. The bank provides a bank statement along
with canceled checks on the last day of each month. The July 2021
bank statement included the following information:
Balance, July 1, 2021
$
57,428
Deposits
180,900
Checks processed
(194,010
)
Service charges
(45
)
NSF checks
(1,900
)
Monthly payment on note, deducted directly by bank from
account
(includes $220 in interest)
(4,020
)
Balance, July 31, 2021
$
38,353...
Harrison Company maintains a checking account at the First National City Bank. The bank provides a...
Harrison Company maintains a checking account at the First
National City Bank. The bank provides a bank statement along with
canceled checks on the last day of each month. The July 2018 bank
statement included the following information:
Balance, July 1, 2018
$
56,678
Deposits
180,300
Checks processed
(193,410
)
Service charges
(70
)
NSF checks
(1,600
)
Monthly loan payment deducted
directly by bank from account
(includes $620 in interest)
(3,720
)
Balance, July 31, 2018
$
38,178
The...
Harrison Company maintains a checking account at the First National City Bank. The bank provides a...
Harrison Company maintains a checking account at the
First National City Bank. The bank provides a bank statement along
with canceled checks on the last day of each month. The July 2021
bank statement included the following information:
Balance, July 1, 2021
$
56,678
Deposits
180,300
Checks processed
(193,410
)
Service charges
(70
)
NSF checks
(1,600
)
Monthly payment on note, deducted directly by bank from
account
(includes $620 in interest)
(3,720
)
Balance, July 31, 2021
$
38,178...
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