Question
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.
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