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Item4 6points ItemSkipped eBook Print References Check my workCheck My Work button is now enabled3 Item 4 El Gato Painting Company maintains a checking account

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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, 2021, reconciliation of the bank balance is as follows:

Balance per bank, November 30 $ 3,411
Add: Deposits outstanding 1,380
Less: Checks outstanding
#363 $ 141
#365 219
#380 74
#381 104
#382 270 (808 )
Adjusted balance per bank, November 30 $ 3,983

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

Balance, December 1 $ 3,983
Receipts 44,450
Disbursements (43,653 )
Balance, December 31 $ 4,780

The December bank statement contained the following information:

Balance, December 1 $ 3,411
Deposits 44,800
Checks processed (43,718 )
Service charges (40 )
NSF checks (620 )
Balance, December 31 $ 3,833

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 $860 was correctly recorded by the bank but was incorrectly recorded on the books as a $680 disbursement for advertising expense. Included in the banks deposits is a $3,100 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, 2021. 2. Prepare any necessary adjusting journal entries indicated.

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