Question

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 $15,239 debit balance. Del Gato Clinic’s June 30 bank statement shows $14,651 on deposit in the bank.

a. Outstanding checks as of June 30 total $1,745.
b. The June 30 bank statement lists a $95 service charge.
c. 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.
d. The June 30 cash receipts of $2,247 were placed in the bank’s night depository after banking hours and were not recorded on the June 30 bank statement.

Answer 1

cash account $15,239

bank statement $14,651

reconciliation per bank statement:

bank statement $14,651

+ deposits in transit $2,247

- outstanding checks ($1,745)

reconciled bank statement $15,153

reconciliation per cash account:

cash account $15,239

+ error on check No. 919, $9

- bank service fees ($95)

reconciled cash account $15,153

reconciled bank statement $15,153 = reconciled cash account $15,153