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In: Accounting

Del Gato Clinic's cash account shows a $16,226 debit balance and its bank statement shows $16,318...

Del Gato Clinic's cash account shows a $16,226 debit balance and its bank statement shows $16,318 on deposit at the close of business on June 30. Outstanding checks as of June 30 total $3,079. The June 30 bank statement lists a $90 bank service charge. 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. The June 30 cash receipts of $2,906 were placed in the bank’s night depository after banking hours and were not recorded on the June 30 bank statement. Exercise 6-12 Bank reconciliation LO P3 Prepare its bank reconciliation using the above information.

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Expert Solution

Del Gato Clinic
Bank Reconciliation
June. 30
Bank Statement Balance      16,318 Book Balance      16,226
Add: Add:
Deposit in Transit of June 30         2,906 Error in recording utility exp                 9
Deduct: Deduct:
Outstanding Checks         3,079 Bank service Charge               90
Adjusted Bank Balance      16,145 Adjusted Book Balance      16,145
Journal Entries
General Journal Debit Credit
1) No Entry Required for outstading check
2) No Entry Required for deposit in transit
3) Cash                 9
     Utility Expense                 9
(To record error correction)
4) Misc. Expense               90
     Cash               90
(To record bank charges)

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