Question
The bank reconciliation prepared by Gatz Company on May 31, 2020, appeared as follows: GATZ COMPANY Bank Reconciliation May 31, 2020 Bank statement balance $
The bank reconciliation prepared by Gatz Company on May 31, 2020, appeared as follows: GATZ COMPANY Bank Reconciliation May 31, 2020 Bank statement balance $ 10,164.35 Book balance $ 21,315.00 Add: Deposit of May 31 in transit 1,042.00 $ 11,206.35 Deduct: Deduct: Outstanding cheques: NSF cheque plus service charge $ 12,649.65 #876 $ 698.00 #882 1,914.00 2,612.00 Bank service charge 71.00 12,720.65 Adjusted bank balance $ 8,594.35 Adjusted book balance $ 8,594.35 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 2020 May 31 Balance 8,594.35 June 1 Cheque #883 GJ16 1,900.00 6,694.35 1 Cheque #884 GJ16 112.00 6,582.35 3 Cheque #885 GJ16 647.00 5,935.35 4 Cheque #886 GJ16 2,007.00 3,928.35 9 Deposit GJ16 4,720.00 8,648.35 12 Cheque #887 GJ16 425.15 8,223.20 12 Cheque #888 GJ16 3,234.00 4,989.20 12 Cheque #889 GJ16 964.00 4,025.20 18 Deposit GJ16 4,020.00 8,045.20 20 Cheque #890 GJ16 2,613.00 5,432.20 21 Cheque #891 GJ16 1,406.24 4,025.96 24 Cheque #892 GJ16 2,566.00 1,459.96 26 Cheque #893 GJ16 74.00 1,385.96 29 Deposit GJ16 1,798.00 3,183.96 The following bank statement is available for June: Bank Statement To: Gatz Company June 30, 2020 Bank of Montreal Cheques/Charges Deposits/Credits Balance 05/31 10,164.35 #884 06/01 112.00 06/01 1,042.00 11,094.35 #883 06/04 1,900.00 9,194.35 #876 06/09 698.00 06/09 4,720.00 13,216.35 #889 06/12 964.00 12,252.35 #882 06/14 1,914.00 10,338.35 #887 06/18 245.15 06/18 4,020.00 14,113.20 #885 06/20 647.00 13,466.20 #891 06/21 1,046.24 12,419.96 #886 06/29 2,007.00 10,412.96 SC 06/30 75.00 06/30 10,337.96 NSF = Not Sufficient Funds SC = Service Charge PMT = Principal Payment INT = Interest Required: a. Prepare a bank reconciliation at June 30, 2020. 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.)
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