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20 September, 14:45

Del Gato Clinic's cash account shows a $15,307 debit balance and its bank statement shows $13,567 on deposit at the close of business on June 30. Outstanding checks as of June 30 total $1,199. The June 30 bank statement lists a $15 bank service charge. Check No. 919, listed with the canceled checks, was correctly drawn for $389 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 $398. The June 30 cash receipts of $2,933 were placed in the bank's night depository after banking hours and were not recorded on the June 30 bank statement. 1. Prepare its bank reconciliation using the above information.

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  1. 20 September, 14:47
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    Answer and Explanation:

    The preparation of the bank reconciliation is presented below:

    Del Gato Clinic's

    Bank reconciliation statement

    June 30

    Particulars Amount Particulars Amount

    Bank cash balance $13,567 Company cash balance $15,307

    Add: Deposits Add: Recording error $9

    in transit $2,933

    Less: Outstanding Less: service fee - $15

    Check - $1,199

    Bank balance Company balance

    After reconciliation $15,301 After reconciliation $15,301

    The recording error is come from

    = $398 - $389

    = $9

    And we do the adjustment accordingly that increased and decreased the company cash and bank cash balance
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