The bank reconciliation prepared by Gatz Company on May 31, 2020, appeared as follows:

The Cash account in the general ledger appeared as follows on June 30 (Gatz uses only a general journal to record transactions):

The following bank statement is available for June:

Required

a. Prepare a bank reconciliation at June 30, 2020. Assume that any errors made were by the bookkeeper (cheque #887 was for office supplies; cheque #891 was for utilities expense).

b. Prepare the necessary entries resulting from the bank reconciliation.

Analysis Component: You have been employed with Gatz Company since June 1, 2020, and part of your job is writing and recording cheques as well as preparing the bank reconciliation. To your surprise, the person you replaced brought in the June bank statement as it had been mailed to her home. While preparing the June bank reconciliation, you notice that cheque #882 for $1,800 cleared the bank in June but is not among the cancelled cheques. What should you do? Explain.

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Gatz Company Bank Reconciliation May 31, 2020 $ 9,564.35 Bank statement balance. Add: Deposit of May 31, in transit. Book balance. $20,056.03 982.17 $10,546.52 Deduct: Outstanding cheques: # 876 # 882 Adjusted bank balance. Deduct: NSF cheque plus service $ 655.99 $11,900.50 charge. Bank service charge. Adjusted book balance. 2,455.99 $ 8,090.53 1,800.00 11,965.50 65.00 $ 8,090.53 Cash Acct. No. 101 Date Explanation PR Debit Credit Balance 2020 May 31 Balance 8,090.53 June Cheque #883 GJ16 1,865.30 6,225.23 Cheque #884 GJ16 112.70 6,112.53 Cheque #885 GJ16 650.84 5,461.69 Cheque #886 GJ16 2,018.45 3,443.24 Deposit GJ16 4,285.26 7,728.50 12 Cheque #887 GJ16 425.15 7,303.35 12 Cheque #888 GJ16 3,040.60 4,262.75 12 Cheque #889 GJ16 974.12 3,288.63 18 Deposit GJ16 3,515.60 6,804.23 20 Cheque #890 GJ16 2,640.00 4,164.23 21 Cheque #891 GJ16 1,406.24 2,757.99 24 Cheque #892 GJ16 2,590.81 167.18 26 Cheque #893 GJ16 75.99 91.19 29 Deposit GJ16 1,845.35 1,936.54