Del Gato Clinic deposits all cash receipts on the day when they are received and it makes all cash pay

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.

Expert Answer


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
Service charges -25
Adjsuted balance as per books 14462
If any doubt please comment. If satisfied you can rate the answer
Accounst Title Dr Cr
Cash 9
Utilities expenses 9
Miscelleneous expenses 25
Cash 25
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