• 
  
  The bank reconciliation prepared by Gatz Company on May 31, 2017, appeared as follows:
  

  GATZ COMPANY
  Bank Reconciliation
  May 31, 2017
  Bank statement balance		$9,064.35	Book balance		$19,009.00
  Add:
  Deposit of May 31 in transit		929.00
  		$9,993.35
  Deduct:			Deduct:
  Outstanding cheques:			NSF cheque plus service
  #876	$622.00		charge	$11,280.65
  #882	1,706.00	2,328.00	Bank service charge	63.00	11,343.65
  Adjusted bank balance		$7,665.35	Adjusted book balance		$7,665.35

  
  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
  2017
  May 31	Balance				7,665.35
  June 1	Cheque #883	GJ16		1,841.00	5,824.35
  1	Cheque #884	GJ16		107.00	5,717.35
  3	Cheque #885	GJ16		618.00	5,099.35
  4	Cheque #886	GJ16		1,917.00	3,182.35
  9	Deposit	GJ16	4,565.00		7,747.35
  12	Cheque #887	GJ16		425.15	7,322.20
  12	Cheque #888	GJ16		3,128.00	4,194.20
  12	Cheque #889	GJ16		934.00	3,260.20
  18	Deposit	GJ16	3,865.00		7,125.20
  20	Cheque #890	GJ16		2,531.00	4,594.20
  21	Cheque #891	GJ16		1,406.24	3,187.96
  24	Cheque #892	GJ16		2,486.00	701.96
  26	Cheque #893	GJ16		71.00	630.96
  29	Deposit	GJ16	1,739.00		2,369.96

  
  The following bank statement is available for June:

  Bank Statement
  To: Gatz Company			June 30, 2017 Bank of Montreal
  Cheques/Charges			Deposits/Credits		Balance
  			05/31		9,064.35
  #884	06/01	107.00	06/01	929.00	9,886.35
  #883	06/04	1,841.00			8,045.35
  #876	06/09	622.00	06/09	4,565.00	11,988.35
  #889	06/12	934.00			11,054.35
  #882	06/14	1,706.00			9,348.35
  #887	06/18	245.15	06/18	3,865.00	12,968.20
  #885	06/20	618.00			12,350.20
  #891	06/21	1,046.24			11,303.96
  #886	06/29	1,917.00			9,386.96
  SC	06/30	72.00	06/30		9,314.96

  NSF = Not Sufficient Funds	SC = Service Charge	PMT = Principal Payment	INT = Interest

  
  Required:
  a. Prepare a bank reconciliation at June 30, 2017. Assume that any errors made were by the book keeper (cheque #887 was for office supplies; cheque #891 was for utilities expense). (Round the final answers to the nearest cent.)

  GATZ COMPANY
  Bank Reconciliation
  June 30, 2017
  Bank Statement			Company's Books
  Bank statement balance			Book balance
  Add:			Add:
  		$0.00			$0.00
  Deduct:			Deduct:
  Outstanding cheques:
  		0.00
  Adjusted bank balance			Adjusted book balance

  • Record to account for error in Cheque #887.

  • Record to account for error in Cheque #891.

  • Record bank service charges for June.

  • 
    
    • 
      
      • 
        

Answer rating: 100% (QA)

solution Bank statement balance Add Deposit of June 30 in transit Deduct Outstanding cheques C... View the full answer