4.

El Gato Painting Company maintains a checking account at American Bank. Bank statements are prepared at the end of each month. The November 30, 2016, reconciliation of the bank balance is as follows:

Balance per bank, November 30			$	3,391
Add: Deposits outstanding				1,360
Less: Checks outstanding
#363	$139
#365	217
#380	72
#381	102
#382	250			(780	)
Adjusted balance per bank, November 30			$	3,971

The companys general ledger checking account showed the following for December:

Balance, December 1		$	3,971
Receipts			44,250
Disbursements			(43,453	)
Balance, December 31		$	4,768

The December bank statement contained the following information:

Balance, December 1		$	3,391
Deposits			44,600
Checks processed			(43,518	)
Service charges			(38	)
NSF checks			(600	)
Balance, December 31		$	3,835

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 $540 was correctly recorded by the bank but was incorrectly recorded on the books as a $450 disbursement for advertising expense. Included in the banks deposits is a $2,900 deposit incorrectly credited to the companys 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 at December 31, 2016.

Bank Reconciliation
Balance per bank statement	?
Add:
?	?
?	?
Deduct:
?	?
?	?
?	?
Corrected cash balance	?
Balance per books	?
Add:
?	?
?	?
Deduct:
?	?
?	?
?	?
?	?
Corrected book balance	?

2.	Prepare any necessary adjusting journal entries indicated. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Record adjustments to cash revealed by the bank reconciliation:

Event	General Journal	Debit	Credit
1	?	?	?
	?	?	?
	?	?	?
	?	?	?
	?	?	?
	?	?	?