ABC Co. is preparing its October 31, 2020 bank reconciliation. The following information was determined. a. The cash balance per books is P560,000 while cash balance per bank statement is P640,000. b. Credit memo P40,000 c. Debit memo P30,000 d. Deposit in transit P150,000 e. Outstanding checks P50,000 f. The disbursement per books are overstated by P90,000. g. The bank debits are understated by P80,000. Requirements. 1. Prepare bank reconciliation. Bank Reconciliation Statement Balance per books, end Add: Credit memos Less: Debit memos (NSF) Add/Less: Book errors Bal. per bank statement, end Add: Deposits in transit (DIT) Less: Outstanding checks (OC) Add/Less: Bank errors Adjusted balance Adjusted balance 2. List down the nature of error its effect on ending balance of cash and the corrections made. Nature of Error Effect on ending balance of cash Correction (Book or Bank) (Amount credited/ debited) (Overstated or Understated) e.g. Cr. P10,000 1. 2.

ABC Co. is preparing its October 31, 2020 bank reconciliation. The following information was determined. a. The cash balance per books is P560,000 while cash balance per bank statement is P640,000. b. Credit memo P40,000 c. Debit memo P30,000 d. Deposit in transit P150,000 e. Outstanding checks P50,000 f. The disbursement per books are overstated by P90,000. g. The bank debits are understated by P80,000. Requirements. 1. Prepare bank reconciliation. Bank Reconciliation Statement Balance per books, end Add: Credit memos Less: Debit memos (NSF) Add/Less: Book errors Bal. per bank statement, end Add: Deposits in transit (DIT) Less: Outstanding checks (OC) Add/Less: Bank errors Adjusted balance Adjusted balance 2. List down the nature of error its effect on ending balance of cash and the corrections made. Nature of Error Effect on ending balance of cash Correction (Book or Bank) (Amount credited/ debited) (Overstated or Understated) e.g. Cr. P10,000 1. 2.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Smith Company started its business on november 1,2020,below is the information needed to prepare a bank reconciliation for the business as at November 30,2020: i) Balance per bank statement was $34100. ii)$1300 check drawn by a customer johnson had been marked "NSF"in November and the company received this notice at the beginning of december 2020. iii)Cash receipts of $8000 recorded on November 2020 were not deposited to bank unti; december 1. iv)Bank service charge for November 2020 amounted $38 was sent to the company together with the bank statement. v)Check #620 for $4000 had been issued in November but was npt presented to the bank for payment. vi)Check #643 for electricity expense cleared the bank for $268 but was erroneously recorded in our books as $240. vii) A $486 deposit by Easy Co.was erroneously credited to our account by the bank. viii)the bank statement showed $30 interest earned on the bank for the month of November 2020. Requieed: Prepare a bank reconciliation…
Provide solution on the following requirements.
The following details are found in the incomplete bank reconciliation statement of Phillip Company for the month ended September 30, 2021: Notes receivable of the customer collected and deposited in the bank- 250,000 Service Charge- 35,000 Interest Income on Deposits- 25,000 Deposits in Transit- 250,000 Outstanding Checks- 350,000 Balance per cash ledger- 725,000 Check of Phillip erroneously charge by the bank to Phillipa - 57,800 What is the reconciled cash to be reported by Phillip Company?
Consolidated Paper has just completed its bank reconciliation for the month of Febrruary 2023 as shown below. Balance per bank....... Add: Deposit in transit......... O Less: Outstanding checks... $16,200 2,600 (900) Balance per books...... Add: Interest earned. Less: Bank service charge.... Add: Error in posting payment of accounts receivable Reconciled balance........ $17,900 customer............ $17,400 200 (100) 2 3 Reconciled balance............... 4 5 a. Prepare the adjusting entry (debits and credits) that is needed as a result of the bank reconciliation. 6 b. What cash balance will Consolidated Paper report on its February 28, 2023 financial statements 7 8 9 0 1 400 $17,900
The following details are found in the incomplete bank reconciliation statement of Phillip Company for the month ended September 30, 2021: Notes payable charged by the bank- 150,000 Service Charge- 35,000 Deposits in Transit- 250,000 Outstanding Checks- 350,000 Balance per bank statement- 325,000 Deposit erroneously recorded by Phillip as 37,500 instead of 57,800 What is the reconciled cash to be reported by Phillip Company?
The Cash account of ReeseCorporation had a balance of $3,540 at October 31, 2018. Included were outstanding checkstotaling $1,800 and an October 31 deposit of $300 that did not appear on the bank statement.The bank statement, which came from Turnstone State Bank, listed an October 31 balance of$5,570. Included in the bank balance was an October 30 collection of $600 on account froma customer who pays the bank directly. The bank statement also showed a $30 service charge,$10 of interest revenue that Reese earned on its bank balance, and an NSF check for $50.Prepare a bank reconciliation to determine how much cash Reese actually had at October 31.
RM Inc. had the following bank reconciliation on August 31, 2021: Balance per bank statement, 8/31 Add: Deposits in transit P5,400,000 600,000 6,000,000 1,350,000 P4,650,000 Less: Outstanding checks Balance per books, 8/31 Data per bank for the month of September 2021 follow: Deposits (including P300,000 note collected for RM) Disbursements (including P210,000 NSF check and P15,000 service charge) P13,500,000 10,500,000 All reconciling items on August 31, 2021 cleared the bank in September. Outstanding checks on September 30 totaled P900,000. There deposits in transit amounted to P1,500,000 on September 30. What is the amount of cash disbursements per book in September?
In preparing its bank reconciliation for the month of March 2007, Derby Company has available the following information: Balance per bank statement 3/31/07 $36,050, Deposit in transit 3/31/07 6,250, Outstanding checks 3/31/07 5,750, Credit erroneously recorded by bank in Derby's account 3/12/07 250, Bank service charges for March 50. What should be the correct balance of cash, at March 31, 2007? $35,250 O $36,250 $36,300 $36,550
Prepare a bank reconciliation statement
As on 31 May 2020 the deposits awaiting clearance is RO15,240 and cheques yet to be presented for payment is RO17,590; while the bank balance as recorded in the Cash book was RO 5,480. How much should be the bank balance as on 31 May 2020 as per bank statement? a. RO 6130 b. RO 6130 Overdraft c. RO 7830 d. RO 7830 overdraft -fast-
VKS Co. is preparing its March 31 bank reconciliation. The following data are available:Per bank:February 28 balance - P859,500March deposits reflected - P476,000March checks reflected - P617,000 (erroneously includes a check drawn by IntAcc1 Company for P15,000)Note collected (including P2,000 interest) - P202,000Service charge - P1,200March 31 balance - P919,300Per books:February 28 balance - P840,600March receipts - P490,000 (includes a collection of P20,800 recorded erroneously. The correct amount of P28,000 was properly reflected in the bank statement)March disbursements – P610,000 (includes February service charge of P1,000)March 31 balance - P720,600Additional data from the February 28 bank reconciliation:Deposits in transit - P18,200Outstanding checks, P38,100How much were the deposit in transit at March 31?
a company recueived a bank stattement with abalance $5350. reconciling items included a book keeper error of $200 ( a $300 check recorded as $500), two outstanding checks totaling $720 a service charge of $15, a de in transit of $180, and interest revenue of $21. what is the adjustment bank balance?