Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The bank reconciliation prepared by Gatz Company on May 31, 2023, appeared as follows: GATZ COMPANY Bank Reconciliation May 31, 2023 Bank statement balance $

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

GATZ COMPANY
Bank Reconciliation
May 31, 2023
Bank statement balance $ 9,264.35 Book balance $ 19,429.00
Add:
Deposit of May 31 in transit 949.00
$ 10,213.35
Deduct: Deduct:
Outstanding cheques: NSF cheque plus service charge $ 11,530.65
#876 $ 636.00
#882 1,744.00 2,380.00 Bank service charge 65.00 11,595.65
Adjusted bank balance $ 7,833.35 Adjusted book balance $ 7,833.35

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

Cash Acct. No. 101
Date Explanation PR Debit Credit Balance
2023
May 31 Balance 7,833.35
June 1 Cheque #883 GJ16 1,847.00 5,986.35
1 Cheque #884 GJ16 107.00 5,879.35
3 Cheque #885 GJ16 618.00 5,261.35
4 Cheque #886 GJ16 1,917.00 3,344.35
9 Deposit GJ16 4,579.00 7,923.35
12 Cheque #887 GJ16 425.15 7,498.20
12 Cheque #888 GJ16 3,138.00 4,360.20
12 Cheque #889 GJ16 936.00 3,424.20
18 Deposit GJ16 3,879.00 7,303.20
20 Cheque #890 GJ16 2,537.00 4,766.20
21 Cheque #891 GJ16 1,406.24 3,359.96
24 Cheque #892 GJ16 2,492.00 867.96
26 Cheque #893 GJ16 71.00 796.96
29 Deposit GJ16 1,745.00 2,541.96

The following bank statement is available for June:

Bank Statement
To: Gatz Company June 30, 2023 Bank of Montreal
Cheques/Charges Deposits/Credits Balance
05/31 9,264.35
#884 06/01 107.00 06/01 949.00 10,106.35
#883 06/04 1,847.00 8,259.35
#876 06/09 636.00 06/09 4,579.00 12,202.35
#889 06/12 936.00 11,266.35
#882 06/14 1,744.00 9,522.35
#887 06/18 245.15 06/18 3,879.00 13,156.20
#885 06/20 618.00 12,538.20
#891 06/21 1,046.24 11,491.96
#886 06/29 1,917.00 9,574.96
SC 06/30 72.00 06/30 9,502.96
NSF = Not Sufficient Funds SC = Service Charge PMT = 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.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

CPA Excel Auditing And Attestation

Authors: Robert A. Prentice

1st Edition

0977165876, 978-0977165872

More Books

Students also viewed these Accounting questions

Question

Is it likely that most links have persistence on the Web?

Answered: 1 week ago

Question

demonstrate the importance of induction training.

Answered: 1 week ago