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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,

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 $ 3,311
Add: Deposits outstanding 1,280
Less: Checks outstanding
#363 $131
#365 209
#380 64
#381 94
#382 420 (918 )
Adjusted balance per bank, November 30 $ 3,673
The companys general ledger checking account showed the following for December:
Balance, December 1 $ 3,673
Receipts 43,450
Disbursements (42,653 )
Balance, December 31 $ 4,470
The December bank statement contained the following information:
Balance, December 1 $ 3,311
Deposits 43,800
Checks processed (42,718 )
Service charges (30 )
NSF checks (520 )
Balance, December 31 $ 3,843

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 $630 was correctly recorded by the bank but was incorrectly recorded on the books as a $360 disbursement for advertising expense. Included in the banks deposits is a $2,100 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.

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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.)

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Bank Reconciliation Balance per bank statement Aeded 3,673 Deposits outstanding Deduct Corrected cash balance Balance per books Aedet 4,470 Deduct Corrected book balance

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