The bank reconciliation prepared by Gatz Company on May 31, 2020, appeared as follows: GATZ COMPANY Bank Reconciliation May 31, 2020 $10,464.35 Book balance $21,945.00 Bank statement balance Add: Deposit of May 31 in transit 1,072.00 $11,536.35 Deduct: NSF cheque plus service charge $13,024.65 Deduct: Outstanding cheques : #876 #882 Adjusted bank balance $ 719.00 1,971.00 74.00 2,690.00 $ 8,846.35 Bank service charge Adjusted book balance 13,098.65 $ 8,846.35 The Cash account in the General Ledger appeared as follows on June 30 (Gatz uses only a General Journal to record transactions): Acct. No. 101 Balance PR Debit Credit Cash Date Explanation 2020 May 31 Balance June 1 Cheque #883 1 Cheque #884 3 Cheque #885 4 Cheque #886 9 Deposit GJ16 GJ16 GJ16 GJ16 GJ16 8,846.35 1,924.00 6,922.35 112.00 6,810.35 647.00 6,163.35 2,007.00 4,156.35 8,936.35 4,780.00 The Cash account in the General Ledger appeared as follows on June 30 (Gatz uses only a General Journal to record transactions): Acct. No. 101 Balance PR Debit Credit 4,780.00 Cash Date Explanation 2020 May 31 Balance June 1 Cheque #883 1 Cheque #884 3 Cheque #885 4 Cheque #886 9 Deposit 12 Cheque #887 12 Cheque #888 12 Cheque #889 18 Deposit 20 Cheque #890 21 Cheque #891 24 Cheque #892 26 Cheque #893 29 Deposit GJ16 GJ16 GJ16 GJ16 GJ16 GJ16 GJ16 GJ16 GJ16 GJ16 GJ16 GJ16 GJ16 GJ16 8,846.35 1,924.00 6,922.35 112.00 6,810.35 647.00 6,163.35 2,007.00 4,156.35 8,936.35 425.15 8,511.20 3,276.00 5,235.20 976.00 4,259.20 8,339.20 2,646.00 5,693.20 1,406.24 4,286.96 2,599.00 1,687.96 74.00 1,613.96 3,435.96 4,080.00 1,822.00 The following bank statement is available for June: Bank Statement To: Gatz Company Cheques/Charges Deposits/Credits 05/31 06/01 1,072.00 06/09 4,780.00 #884 06/01 #883 06/04 #876 06/09 #889 06/12 #882 06/14 #887 06/18 #885 06/20 #891 06/21 #886 06/29 SC 06/30 NSF = Not Sufficient Funds 06/18 June 30, 2020 Bank of Montreal Balance 10, 464.35 11,424.35 9,500.35 13,561.35 12,585.35 10,614.35 14,449.20 13,802.20 12,755.96 10,748.96 10,673.96 INT = Interest 112.00 1,924.00 719.00 976.00 1,971.00 245.15 647.00 1,046.24 2,007.00 75.00 SC = Service Charge 4,080.00 06/30 PMT = Principal Payment Required: a. Prepare a bank reconciliation at June 30, 2020. Assume that any errors made were by the bookkeeper (cheque #887 was for offic supplies; cheque #891 was for utilities expense). (Round your answers to 2 decimal places.) GATZ COMPANY Bank Reconciliation June 30, 2020 Bank Statement Company's Books Bank statement balance Book balance Add: Add: Deduct: Deduct: Outstanding cheques: GAIZ COMPANY Bank Reconciliation June 30, 2020 Bank Statement Company's Books Bank statement balance Book balance Add: Add: Deduct: Deduct: Outstanding cheques: Adjusted bank balance Adjusted book balance b. Prepare the necessary entries resulting from the bank reconciliation. View transaction list Journal entry worksheet Record to account for error in Cheque #887. Note: Enter debits before credits. Date General Journal Debit Credit June 30
