Answered step by step
Verified Expert Solution
Question
1 Approved Answer
is the chart i did correct or am i missing anything? El Gato Painting Company maintains a checking account at American Bank. Bank statements are
is the chart i did correct or am i missing anything? El Gato Painting Company maintains a checking account at American Bank. Bank statements are prepared at the end of each month. The November 30, 2021, reconciliation of the bank balance is as follows: 53,291 1,260 Balance per bank, November 30 Add Deposits outstanding Lesst Checks outstanding #363 365 380 2331 *382 Adjusted balance per bank, November 30 $ 129 207 62 92 400 (890) $3,661 The company's general ledger checking account showed the following for December Balance, December 1 Teceipts Disbursements Balance, December 31 $3,661 43,250 (42,453) 4.458 The December bank statement contained the following information: Balance, December 1 Deposits Checks processed Service charge NST check Balance, December 31 $ 3.291 43.600 (42,518 (28) 500 The checks that were processed by the back 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 The December bank statement contained the following information Hel Balance, December 1 Deposits Checks processed Service charges NSF checks Balance, December 31 $ 3,291 43,600 (42,518) (28) (500) $ 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 Required: 1. Prepare a bank reconciliation for the El Gato checking account at December 31, 2021 2. Prepare any necessary adjusting journal entries indicated Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a bank reconciliation for the E Gato checking account at December 31, 2021. Bank Reconciliation Balance per bank statement $ 3,845 Add Deposits outstanding 2810 Complete this question by entering your answers in the tabs b Required 1 Required 2 Prepare a bank reconciliation for the El Gato checking account at Decem $ $ Bank Reconciliation Balance per bank statement Add: Deposits outstanding 3,845 2,810 Deduct: Outstanding checks Bank error (1,095) (1,900) Corrected cash balance $ 3,660 $ 4.458 Balance per books Deduct: Service charges NSF checks Error in recording check (28) (500) (270) Corrected book balance $ 3,660 Required Required
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started