Del Gato Clinic deposits all cash receipts on the day when they are received and it makes all cash payments by check. At the close of business on June 30, 2017, its Cash account shows an $14,478 debit balance. Del Gato Clinic’s June 30 bank statement shows $13,036 on deposit in the bank.
a. Outstanding checks as of June 30 total $1,513.
b. The June 30 bank statement lists a $25 service charge.
c. Check No. 919, listed with the canceled checks, was correctly drawn for $589 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 $598.
d. The June 30 cash receipts of $2,939 were placed in the bank’s night depository after banking hours and were not recorded on the June 30 bank statement.
|Bank reconcilaition sttement as at June 30|
|Balance as per Bank statement||$13,036|
|Add: deposit in Transit||$2,939|
|Less: outstanding checks||-1513|
|Adjusted Balance as per bank||$14,462|
|Ending balance as per books June 30||14478|
|Error made in books (598-589)||9|
|Adjsuted balance as per books||14462|
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