Prepare the adjusting journal entries that Cruz Clinic must record as a result of preparing the bank reconciliation in Exercise 8-8.

Exercise 8-8

Cruz Clinic deposits all cash receipts on the day when they are received and makes all cash payments by check. At the close of business on June 30, 2004, its Cash account shows an $11,352 debit bal¬ ance. Cruz Clinic’s June 30 bank statement shows $10,332 on deposit in the bank on that day. Prepare a bank reconciliation for Cruz Clinic using the following information:

a. Outstanding checks as of June 30 total $1,713.

b. The June 30 bank statement included an $18 debit memorandum for bank services.

c. Check No. 919, listed with the canceled checks, was correctly drawn for $489 in payment of a utility bill on June 15. Cruz Clinic mistakenly recorded it with a debit to Utilities Expense and a credit to Cash in the amount of $498.

d. The June 30 cash receipts of $2,724 were placed in the bank’s night depository after banking hours and were not recorded on the June 30 bank statement.