Question

Del Gato Clinic's cash account shows a $16,565 debit balance and its bank statement shows $16,119 on deposit at the close of business on June 30.

1. Outstanding checks as of June 30 total $2,614.
2. The June 30 bank statement lists a $45 bank service charge.
3. Check No. 919, listed with the canceled checks, was correctly drawn for $789 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 $798.
4. The June 30 cash receipts of $3,024 were placed in the bank’s night depository after banking hours and were not recorded on the June 30 bank statement.

Prepare its bank reconciliation using the above information.

Answer 1

Solution:

Del Gato Clinic
Bank Reconciliation Statement
As on June. 30
Cash balance according to bank statement		$             16,119
Add:
Deposit in transit	$               3,024	$               3,024
Deduct:
Outstanding Checks	$             (2,614)	$             (2,614)
Adjusted cash balance per bank		$             16,529
Cash balance according to company`s records		$             16,565
Add:
Book Errors overstated the book balance[798-789]	$                       9	$                        9
Deduct:
Bank Service Charges	$                   (45)	$                   (45)
Adjusted cash balance per book		$             16,529