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El Gato Painting Company maintains a checking account at American Bank. Bank statements are prepared at the end of each month. The November 30, 2024, reconciliation of the bank balance is as follows: Balance per bank, November 30 Add: Deposits outstanding Less: Checks outstanding #363 #365 #380 #381 #382 Adjusted balance per bank, November 30 $ 3,381 1,350 $138 216 71 101 240 (766) $ 3,965 The company's general ledger checking account showed the following for December: Balance, December 1 Receipts Disbursements Balance, December 31 $ 3,965 44,150 (43,353) $ 4,762 The December bank statement contained the following information: Balance, December 1 Checks processed Deposits Service charges NSF checks Balance, December 31 $ 3,381 44,500 (43,418) (37) (590) $3,836 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 $530 was correctly recorded by the bank but was incorrectly recorded on the books as a $350 disbursement for advertising expense. Included in the bank's deposits is a $2,800 deposit incorrectly credited to the company's 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. Required: 1. Prepare a bank reconciliation for the El Gato checking account at December 31, 2024. 2. Prepare any necessary adjusting journal entries indicated.

El Gato Painting Company maintains a checking account at American Bank. Bank statements are prepared at the end of each month. The November 30, 2024, reconciliation of the bank balance is as follows: Balance per bank, November 30 Add: Deposits outstanding Less: Checks outstanding #363 #365 #380 #381 #382 Adjusted balance per bank, November 30 $ 3,381 1,350 $138 216 71 101 240 (766) $ 3,965 The company's general ledger checking account showed the following for December: Balance, December 1 Receipts Disbursements Balance, December 31 $ 3,965 44,150 (43,353) $ 4,762 The December bank statement contained the following information: Balance, December 1 Checks processed Deposits Service charges NSF checks Balance, December 31 $ 3,381 44,500 (43,418) (37) (590) $3,836 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 $530 was correctly recorded by the bank but was incorrectly recorded on the books as a $350 disbursement for advertising expense. Included in the bank's deposits is a $2,800 deposit incorrectly credited to the company's 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. Required: 1. Prepare a bank reconciliation for the El Gato checking account at December 31, 2024. 2. Prepare any necessary adjusting journal entries indicated.

College Accounting (Book Only): A Career Approach
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter6: Bank Accounts, Cash Funds, And Internal Controls
Section: Chapter Questions
Problem 5PA
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El Gato Painting Company maintains a checking account at American Bank. Bank statements are prepared at the end of each month. The November 30, 2024, reconciliation of the bank balance is as follows: Balance per bank, November 30 Add: Deposits outstanding Less: Checks outstanding #363 #365 #380 #381 #382 $ 138 216 71 101 240 $ 3,381 1,350 (766) Adjusted balance per bank, November 30 $ 3,965 The company's general ledger checking account showed the following for December: Balance, December 1 Receipts Disbursements Balance, December 31 $ 3,965 44,150 (43,353) $ 4,762 The December bank statement contained the following information: Balance, December 1 Checks processed Deposits Service charges NSF checks Balance, December 31 $ 3,381 44,500 (43,418) (37) (590) $ 3,836 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 $530 was correctly recorded by the bank but was incorrectly recorded on the books as a $350 disbursement for advertising expense. Included in the bank's deposits is a $2,800 deposit incorrectly credited to the company's 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. Required: 1. Prepare a bank reconciliation for the El Gato checking account at December 31, 2024. 2. Prepare any necessary adjusting journal entries indicated.
Transcribed Image Text:El Gato Painting Company maintains a checking account at American Bank. Bank statements are prepared at the end of each month. The November 30, 2024, reconciliation of the bank balance is as follows: Balance per bank, November 30 Add: Deposits outstanding Less: Checks outstanding #363 #365 #380 #381 #382 $ 138 216 71 101 240 $ 3,381 1,350 (766) Adjusted balance per bank, November 30 $ 3,965 The company's general ledger checking account showed the following for December: Balance, December 1 Receipts Disbursements Balance, December 31 $ 3,965 44,150 (43,353) $ 4,762 The December bank statement contained the following information: Balance, December 1 Checks processed Deposits Service charges NSF checks Balance, December 31 $ 3,381 44,500 (43,418) (37) (590) $ 3,836 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 $530 was correctly recorded by the bank but was incorrectly recorded on the books as a $350 disbursement for advertising expense. Included in the bank's deposits is a $2,800 deposit incorrectly credited to the company's 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. Required: 1. Prepare a bank reconciliation for the El Gato checking account at December 31, 2024. 2. Prepare any necessary adjusting journal entries indicated.
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