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 Add: Deposits outstanding Less: Checks outstanding $3,291 1,260 #363 #365 #380 #381 #382 $ 129 207 62 92 (890) $3,661 Adjusted balance per bank, November 30 The company's general ledger checking account showed the following for December: Balance, December 1 Receipts Disbursements $ 3,661 43,250 42,453 $ 4,458 Balance, December 3:1 The December bank statement contained the following information: Balance, December 1 Deposits Checks processed Service charges NSF checks $ 3,291 43,600 (42,518) (28) (500) Balance, December 31 $ 3,845 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 $410 was correctly recorded by the bank but was incorrectly recorded on the books as a $140 disbursement for advertising expense. Included in the bank's deposits is a $1,900 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 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 Add: Deposits outstanding Less: Checks outstanding $3,291 1,260 #363 #365 #380 #381 #382 $ 129 207 62 92 (890) $3,661 Adjusted balance per bank, November 30 The company's general ledger checking account showed the following for December: Balance, December 1 Receipts Disbursements $ 3,661 43,250 42,453 $ 4,458 Balance, December 3:1 The December bank statement contained the following information: Balance, December 1 Deposits Checks processed Service charges NSF checks $ 3,291 43,600 (42,518) (28) (500) Balance, December 31 $ 3,845 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 $410 was correctly recorded by the bank but was incorrectly recorded on the books as a $140 disbursement for advertising expense. Included in the bank's deposits is a $1,900 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
