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 $630 was correctly recorded by the bank but was incorrectly recorded on the books as a $360 disbursement for advertising expense. included in the bank’s deposits is a $2,100 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.
1. prepare a bank reconciliation for the el gato checking account at december 31, 2018.
2. prepare any necessary adjusting journal entries indicated.
(a) See the bank reconciliation statement below
EI Gato Painting company
Bank Reconciliation Statement
Balance on bank statement $3,851.00
($42,650 - $43,000+ $2,150.00
$1,200 + $1,300)
Total Additions $2,150.00
($41,853 + $90 - $831.00
$41,918 + $806)
Bank Error $1,300.00
Total Deductions $2,131.00
Adjusted bank balance $3,870.00
Balance in books $4,422.00
Service Charge $22.00
NSF Check $440.00
Incorrect recording of check 411 $90.00
Total Deductions $552.00
Adjusted book balance $3,870.00
Journal Entries - EI Gato Painting
Date Particulars Debit Credit
31-Dec Accounts receivables Dr $440.00
2021 Miscellenous Expenses Dr $22.00
Advertising Expense Dr $90.00
To Cash $552.00
what are the options
the correct answer option is b. a single paragraph.
when you are thinking about paragraph topics, you should always choose a subject that can be adequately addressed in a single paragraph.
a paragraph is a piece of writing consisting of a few sentences that deal with a single theme. it has only a single idea that the paragraph revolves around and talks about.
so a paragraph topic must be chosen wisely where a single idea can be communicated in a single paragraph.