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 #363 365 300 #381 #382 $3,431 1,400 $143 223 26 106 Adjusted balance per bank, November 30 290 (436) $3,995 The company's general ledger checking account showed the following for December Balance, December 1 Receipts Disbursements Balance, December 31 $3,995 44,650 (49,853) $4,792 The December bank statement contained the following information Balance, December 1 Deposits Checks processed $3,431 45,000 (43,918) Service charges NSF checks Balance, December 31 (42) (640) $3.831 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 $870 was correctly recorded by the bank but was incorrectly recorded on the books as a $780 disbursement for advertising expense. Included in the bank's deposits is a $3,300 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 #363 365 300 #381 #382 $3,431 1,400 $143 223 26 106 Adjusted balance per bank, November 30 290 (436) $3,995 The company's general ledger checking account showed the following for December Balance, December 1 Receipts Disbursements Balance, December 31 $3,995 44,650 (49,853) $4,792 The December bank statement contained the following information Balance, December 1 Deposits Checks processed $3,431 45,000 (43,918) Service charges NSF checks Balance, December 31 (42) (640) $3.831 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 $870 was correctly recorded by the bank but was incorrectly recorded on the books as a $780 disbursement for advertising expense. Included in the bank's deposits is a $3,300 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
300
#381
#382
$3,431
1,400
$143
223
26
106
Adjusted balance per bank, November 30
290
(436)
$3,995
The company's general ledger checking account showed the following for December
Balance, December 1
Receipts
Disbursements
Balance, December 31
$3,995
44,650
(49,853)
$4,792
The December bank statement contained the following information
Balance, December 1
Deposits
Checks processed
$3,431
45,000
(43,918)
Service charges
NSF checks
Balance, December 31
(42)
(640)
$3.831
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 $870 was correctly recorded by the bank but was incorrectly recorded on the books as a $780
disbursement for advertising expense. Included in the bank's deposits is a $3,300 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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