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 \(11,589 debit balance. Del Gato Clinic’s June 30 bank statement shows \)10,555 on deposit in the bank. Prepare a bank reconciliation for Del Gato Clinic using the following information:

a. Outstanding checks as of June 30 total \(1,829.

b. The June 30 bank statement lists a \)16 bank service charge.

c. Check No. 919, listed with the cancelled checks, was correctly drawn for \(467 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 \)476.

d. The June 30 cash receipts of $2,856 were placed in the bank’s night depository after banking hours and were not recorded on the June 30 bank statement.

Short answer

Answer

The adjusted Bank statement balance and Adjusted Book balance are $11,582.

Step-by-step solution

Step-by-Step SolutionStep 1: Introduction to topic

Bank Reconciliation Statement: A bank reconciliation statement is a statement that reconciles the balance as per the entity's bank account with the balance as per its books of accounts.

Bank Reconciliation Statement-

Del Gato Clinic
Bank reconciliation statement
Bank statement balance	$10,555	Book Balance	11,589
Outstanding checks.	-$1,829	Bank service charge	-$16
Deposit of June 30	$2,856	Error on check. no. 919	$9
	$11,582		$11,582