Del Gato Clinic's cash account shows a $17,362 debit balance and its bank statement shows $15,907 on deposit at the close of business on June 30.Outstanding checks as of June 30 total $1,382.The June 30 bank statement lists a $70 bank service charge.Check No. 919, listed with the canceled checks, was correctly drawn for $889 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 $898.The June 30 cash receipts of $2,776 were placed in the bank’s night depository after banking hours and were not recorded on the June 30 bank statement. Prepare the adjusting journal entries that Del Gato Clinic must record as a result of preparing the bank reconciliation.

Adjusting entries are made at the end of the accounting period to accrue or defer the expenses and…

Answered: Del Gato Clinic's cash account shows a…

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter6: Bank Accounts, Cash Funds, And Internal Controls

Section: Chapter Questions

Problem 5E

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Del Gato Clinic's cash account shows a $17,362 debit balance and its bank statement shows $15,907 on deposit at the close of business on June 30.

Outstanding checks as of June 30 total $1,382.
The June 30 bank statement lists a $70 bank service charge.
Check No. 919, listed with the canceled checks, was correctly drawn for $889 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 $898.
The June 30 cash receipts of $2,776 were placed in the bank’s night depository after banking hours and were not recorded on the June 30 bank statement.

Prepare the adjusting journal entries that Del Gato Clinic must record as a result of preparing the bank reconciliation.

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