Adding deposits outstanding and deducting checks outstanding.?

[DeterminedStudent]

So I've been working on this wonderful 4 part problem worth 20 points, and I figured everything out except for this tiny section regarding adding deposits outstanding and deducting checks outstanding. This little piece that's missing is only worth about .25 of a point, so its completely immaterial, however i just want to figure out what im screwing up on. I attached the answer below and any help would be greatly appreciated, thanks!



Sincerly,

A determined college student.











Problem 7-13 Bank reconciliation and adjusting entries (Based on Appendix 7) LOA

El Gato Painting Company maintains a checking account at American Bank. Bank statements are prepared at the end of each month. The November 30, 2009, reconciliation of the bank balance is as follows:

Balance per bank, November 30 $3,231

Add: Deposits outstanding 1,200

Less: Checks outstanding

#363 $123

#365 201

#380 56

#381 86

#382 340 (806)



Adjusted balance per bank, November 30 $3,625



The company?s general ledger checking account showed the following for December:

Balance, December 1 $3,625

Receipts 42,650

Disbursements (41,853)



Balance, December 31 $4,422



The December bank statement contained the following information:

Balance, December 1 $3,231

Deposits 43,000

Checks processed (41,918)

Service charges (22)

NSF checks (440)



Balance, December 31 $3,851



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 $320 was correctly recorded by the bank but was incorrectly recorded on the books as a $230 disbursement for advertising expense. Included in the bank?s deposits is a $1,300 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, 2009.





Step 1: Bank Balance to Corrected Balance



Balance per bank statement $ 3851

Add: Deposits outstanding XXXX

Deduct:

Bank error - deposit incorrectly credited to company account ( 1300 )



Checks outstanding ( XXXX )

Corrected cash balance $ 3870

[Sandy211]

Balance per bank statement $ 3851
Add: Deposits outstanding $2,150
Deduct:
Bank error - deposit incorrectly credited to company account ( 1300 )

Checks outstanding ( 831 )
Corrected cash balance $ 3870