The bank reconciliation prepared by Gatz Company on May 31, 2023, appeared as follows:

The following bank statement is available for June:

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).

b. Prepare the necessary entries resulting from the bank reconciliation.

Analysis Component:
You have been employed with Gatz Company since June 1, 2023, and part of your job is writing and recording cheques as well as preparing the bank reconciliation. To your surprise, the person you replaced brought in the June bank statement as it had been mailed to her home. While preparing the June bank reconciliation, you notice that cheque #882 for $1,800 cleared the bank in June but is not among the cancelled cheques. What should you do? Explain.

Transcribed Image Text:

Bank statement balance Add: Deposit of May 31, in transit Deduct: Outstanding cheques: Gatz Company Bank Reconciliation May 31, 2023 $ 9,564.35 Book balance # 876 # 882 Adjusted bank balance IBI $ 655.99 1,800.00 982.17 $10,546.52 Deduct: NSF cheque plus service charge $11,900.50 2,455.99 Bank service charge $ 8,090.53 Adjusted book balance 65.00 $20,056.03 11,965.50 $ 8,090.53