El Gato Painting Company maintains a checking account at American Bank. Bank statements are prepared at the end of each month.
The November reconciliation of the bank balance is as follows:
The company's general ledger checking account showed the following for December:
The December bank statement contained the following information:
The checks that were processed by the bank in December include all of the outstanding checks at the end of November except for
check # 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 # for $ was correctly recorded by the bank but was incorrectly recorded on the books as a $
disbursement for advertising expense. Included in the bank's deposits is a $ 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:
Prepare a bank reconciliation for the El Gato checking account at December
Prepare any necessary adjusting journal entries indicated.
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Prepare a bank reconciliation for the El Gato checking account at December
