Problem 7-5A Preparation of bank reconciliation and recording adjustments LO6

The bank reconciliation prepared by Gatz Company on May 31, 2023, appeared as follows:

GATZ COMPANY Bank Reconciliation May 31, 2023 Bank statement balance $9,564.35 Book balance $20,056.03 Add: Deposit of May 31 in transit 982.17 $10,546.52 Deduct: Deduct: Outstanding cheques: NSF cheque plus service charge$11,900.50 #876$655.99 #882 1,800.00 2,455.99 Bank service charge 65.00 11,965.50 Adjusted bank balance $8,090.53 Adjusted book balance $8,090.53

The Cash account in the General Ledger appeared as follows on June 30 (Gatz uses only a General Journal to record transactions):

CashAcct. No. 101 DateExplanation PR Debit CreditBalance 2023 May 31Balance 8,090.53 June 1Cheque #883 GJ16 1,865.306,225.23 1Cheque #884 GJ16 112.706,112.53 3Cheque #885 GJ16 650.845,461.69 4Cheque #886 GJ16 2,018.453,443.24 9Deposit GJ16 4,285.26 7,728.50 12Cheque #887 GJ16 425.157,303.35 12Cheque #888 GJ16 3,040.604,262.75 12Cheque #889 GJ16 974.123,288.63 18Deposit GJ16 3,515.60 6,804.23 20Cheque #890 GJ16 2,640.004,164.23 21Cheque #891 GJ16 1,406.242,757.99 24Cheque #892 GJ16 2,590.81167.18 26Cheque #893 GJ16 75.9991.19 29Deposit GJ16 1,845.35 1,936.54

The following bank statement is available for June:

Bank Statement To: Gatz CompanyJune 30, 2023 Bank of Montreal Cheques/ChargesDeposits/Credits Balance 05/31 9,564.35 #88406/01112.7006/01982.17 10,433.82 #88306/041,865.30 8,568.52 #87606/09655.9906/094,285.26 12,197.79 #88906/12974.12 11,223.67 #88206/141,800.00 9,423.67 #88706/18245.1506/183,515.60 12,694.12 #88506/20650.84 12,043.28 #89106/211,046.24 10,997.04 #88606/292,018.45 8,978.59 SC06/3075.0006/30 8,903.59 NSF = Not Sufficient FundsSC = Service ChargePMT = Principal Payment INT = Interest

Required: a. Prepare a bank reconciliation at June 30, 2023. Assume that any errors made were by the bookkeeper (cheque #887 was for office supplies; cheque #891 was for utilities expense). (Round your answers to 2 decimal places.)

b. Prepare the necessary entries resulting from the bank reconciliation. (Round your answers to 2 decimal places.)