Question

Required information

Use the following information for the Exercises below.

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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 $16,159 debit balance. Del Gato Clinic’s June 30 bank statement shows $14,608 on deposit in the bank.

Outstanding checks as of June 30 total $1,536.

The June 30 bank statement lists a $60 service charge.

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.

The June 30 cash receipts of $3,036 were placed in the bank’s night depository after banking hours and were not recorded on the June 30 bank statement.

Exercise 6-9 Bank reconciliation LO P3

Prepare a bank reconciliation for Del Gato Clinic using the above information:

Answer 1

Solution:

Del Gato Clinic
Bank Reconciliation - June 30, 2017
Bank's Cash balance		Company's cash balance
Particulars	Amount	Particulars	Amount
Ending balance as per Bank Statements	$14,608.00	Ending Balance as per cash books	$16,159.00
Additions:		Additions:
Outstanding cash receipt	$3,036.00	Incorrect recording of check no 919 ($598-$589)	$9.00
Deductions:		Deductions:
Outstanding Checks	$1,536.00	Service Charge	$60.00
Up to date cash balance as per bank	$16,108.00	Up to date cash balance as per books	$16,108.00