El Gato Painting Company maintains a checking account atAmerican Bank. Bank statements are prepared at the end of eachmonth. The November 30, 2016, reconciliation of the bank balance isas follows:
Balance per bank, November 30
$3,231
Add: Deposits outstanding
1,200
Less: Checks outstanding
#363
$123
#365
201
#380
56
#381
86
#382
340
(806)
Adjusted balance per bank, November 30
$3,625
The company's general ledger checking account showed thefollowing for December:
Balance, December 1
$ 3,625
Receipts
42,650
Disbursements
(41,853)
Balance, December 31
$ 4,422
The December bank statement contained the followinginformation:
Balance, December 1
$3,231
Deposits
43,000
Checks processed
(41,918)
Service charges
(22)
NSF checks
(440)
Balance, December 31
$3,851
The checks that were processed by the bank in December includeall of the outstanding checks at the end of November except forcheck#365. In addition, there are some December checks that had notbeen processed by the bank by the end of the month. Also, youdiscover that check#411 for $320 was correctly recorded by the bankbut was incorrectly recorded on the books as a $230 disbursementfor advertising expense. Included in the bank's deposits is a$1,300 deposit incorrectly credited to the company's account. Thedeposit should have been posted to the credit of the Los GatosCompany. The NSF checks have not been redeposited and the companywill seek payment from the customers involved.
Required:
1. Prepare a bank reconciliation for the ElGato checking account at December 31, 2016.
2. Prepare any necessary adjusting journalentries indicated.
El Gato Painting Company maintains a checking account atAmerican Bank. Bank statements are prepared at the end of eachmonth. The November 30, 2016, reconciliation of the bank balance isas follows:
Balance per bank, November 30 | $3,231 | |
Add: Deposits outstanding | 1,200 | |
Less: Checks outstanding | ||
#363 | $123 | |
#365 | 201 | |
#380 | 56 | |
#381 | 86 | |
#382 | 340 | (806) |
Adjusted balance per bank, November 30 | $3,625 |
The company's general ledger checking account showed thefollowing for December:
Balance, December 1 | $ 3,625 |
Receipts | 42,650 |
Disbursements | (41,853) |
Balance, December 31 | $ 4,422 |
The December bank statement contained the followinginformation:
Balance, December 1 | $3,231 |
Deposits | 43,000 |
Checks processed | (41,918) |
Service charges | (22) |
NSF checks | (440) |
Balance, December 31 | $3,851 |
The checks that were processed by the bank in December includeall of the outstanding checks at the end of November except forcheck#365. In addition, there are some December checks that had notbeen processed by the bank by the end of the month. Also, youdiscover that check#411 for $320 was correctly recorded by the bankbut was incorrectly recorded on the books as a $230 disbursementfor advertising expense. Included in the bank's deposits is a$1,300 deposit incorrectly credited to the company's account. Thedeposit should have been posted to the credit of the Los GatosCompany. The NSF checks have not been redeposited and the companywill seek payment from the customers involved.
Required:
1. Prepare a bank reconciliation for the ElGato checking account at December 31, 2016.
2. Prepare any necessary adjusting journalentries indicated.
Related questions
El Gato Painting Company maintains a checking account at American Bank. Bank statements are prepared at the end of each month. The November 30, 2018, reconciliation of the bank balance is as follows:
| Balance per bank, November 30 | $3,281 | |
| Add: Deposits outstanding | $1,250 | |
| Less: Checks outstanding | ||
| #363 | $128 | |
| #365 | $206 | |
| #380 | $61 | |
| #381 | $91 | |
| #382 | $390 | ($876) |
| Adjusted balance per bank, November 30 | 3,655 |
The company’s general ledger checking account showed the following for December:
| Balance, December 1 | $3,655 |
| Receipts | $43,150 |
| Disbursements | ($42,353) |
| Balance, December 31 | $4,452 |
The December bank statement contained the following information:
| Balance, December 1 | $3,281 |
| Deposits | $43,500 |
| Checks processed | ($42,418) |
| Service charges | ($27) |
| NSF checks | ($490) |
| Balance, December 31 | 3,846 |
The checks that were processed by the bank in December include all of the outstanding checks at the end of November except for check #365. In addition, there are some December checks that had not been processed by the bank by the end of the month. Also, you discover that check #411 for $430 was correctly recorded by the bank but was incorrectly recorded on the books as a $340 disbursement for advertising expenses. Included in the bank’s deposits is a $1,800 deposit incorrectly credited to the company’s account. The deposit should have been posted to the credit of the Los Gatos Company. The NSF checks have not been redeposited and the company will seek payment from the customers involved.
Required
1. Prepare a bank reconciliation for the El Gato checking account on December 31, 2018.
2. Prepare any necessary adjusting journal entries indicated.
