The checks that were processed by the bank in December include all of the outstanding checks at the end of November except for check #365. In addition, there are some December checks that had not been processed by the bank by the end of the month. Also, you discover that check #411 for $410 was correctly recorded by the bank but was incorrectly recorded on the books as a $140 disbursement for advertising expense. Included in the banks deposits is a $1,900 deposit incorrectly credited to the companys account. The deposit should have been posted to the credit of the Los Gatos Company. The NSF checks have not been redeposited and the company will seek payment from the customers involved.

El Gato Painting Company maintains a checking account at American Bank. Bank statements are prepared at the end of each month. The November 30, 2021, reconciliation of the bank balance is as follows: $3,291 1,260 Balance per bank, November 30 Add: Deposits outstanding Less: Checks outstanding #363 #365 #380 #381 #382 Adjusted balance per bank, November 30 $ 129 207 62 92 400 (890) $3,661 The company's general ledger checking account showed the following for December: Balance, December 1 Receipts Disbursements Balance, December 31 $ 3,661 43,250 (42,453) $ 4,458 The December bank statement contained the following information: Balance, December 1 Deposits Checks processed Service charges NSF checks Balance, December 31 $ 3,291 43,600 (42,518) (28) (500) $ 3,845 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a bank reconciliation for the El Gato checking account at December 31, 2021. Bank Reconciliation $ 3,845 Balance per bank statement Add: Deposits outstanding Deduct: Outstanding checks Error in recording check Corrected cash balance Balance per books Deduct: Corrected book balance