Activity 6In reconciling the cash balance on December 31,2019 with that shown in the bank balance, Red Company gathered the following facts:Balance per bank statement4,000,000Outstanding checks600,000 Deposit in transit475,000Service charge10,000Proceeds of bank loan, December 1, discounted for 6 months at 12%, not recorded on company books940,000Customer’s check charged back by bank for absence of counter signature50,000Deposit of P100,000 incorrectly recorded by bank as10,000Check of Rid Company charged by bank against Red Company account150,000Customer’s note collected by bank in favor of Red Company. Face 400,000 Interest 40,000 Total 440,000 Collection fee 5,000435,000Erroneous debit memo of December 28, to charge company’s account with settlement of bank loan200,000Deposit of Rid Company credited to Red account300,000Requirement: Prepare a bank reconciliation. Number55510,00055,00040,00025,00065,00070,000275,000761762763764165Receipts of August 31, deposited September 1UMThe bank statement showed the following charges:a. Service charge for Augustb. NSF check received froma customer5,00085,000The stub for check number 765 and the invoice relating thereto show that it was for P50,000.It was recorded incomectly inthe cash disbursements joumal as P70,000. This check was drawnin payment of anaccOunt payable. Paymet has been stopped oncheck number 555 which wasdrawn in payment of an account payable. The payee cannot be located. The cash balance perledger on August 31, 2019 isVAD C1946In a Nutshell (ULO 4)Activity 6Inreconciling the cash balance on December 31,2019 with that showninthe bank balance, RedCompany gathered the following facts:Balance per bank statementOutstanding checksDeposit in transitService chargeProceeds of bank loan, December 1, discounted for 6 months at12%, not recorded on company books4,000,000600,000475,00010,000940,000- 95-OUMCollege of Accounting Education3F, Business & Engineering BuildingMatina, Davao CityPhone No.: (082)300-5456 Local 137The University of MindanaoCustomer's check charged back by bank for absence of countersignatureDeposit of P100,000 incorrectly recorded by bank asCheck of Rid Company charged by bank against Red Company50,00010,000150,000accountCustomer's note collected by bank in favor of Red Company.FaceInterestTotalCollection fee400,00040,000440,0005,000435,000Erroneous debit memo of December 28, to charge company'saccount with settlement of bank loanDeposit of Rid Company credited to Red account200,000300,000Requirement: Prepare a bank reconciliation.Q&A listDo you have any question for clarification?Questions/IssuesArswers1.2.3.13.4.5.4.5.INDANOF MI

Bank reconciliation statement: It is the statement that gives summary of reconciling bank account…

Answered: Activity 6 In reconciling the cash…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Concept explainers

Question

Activity 6 In reconciling the cash balance on December 31,2019 with that shown in the bank balance, Red Company gathered the following facts: Balance per bank statement 4,000,000 Outstanding checks 600,000 Deposit in transit 475,000 Service charge 10,000 Proceeds of bank loan, December 1, discounted for 6 months at 12%, not recorded on company books 940,000 Customer’s check charged back by bank for absence of counter signature 50,000 Deposit of P100,000 incorrectly recorded by bank as 10,000 Check of Rid Company charged by bank against Red Company account 150,000 Customer’s note collected by bank in favor of Red Company. Face 400,000 Interest 40,000 Total 440,000 Collection fee 5,000 435,000 Erroneous debit memo of December 28, to charge company’s account with settlement of bank loan 200,000 Deposit of Rid Company credited to Red account 300,000 Requirement: Prepare a bank reconciliation.

Number
555
10,000
55,000
40,000
25,000
65,000
70,000
275,000
761
762
763
764
165
Receipts of August 31, deposited September 1
UM
The bank statement showed the following charges:
a. Service charge for August
b. NSF check received froma customer
5,000
85,000
The stub for check number 765 and the invoice relating thereto show that it was for P50,000.
It was recorded incomectly inthe cash disbursements joumal as P70,000. This check was drawn
in payment of anaccOunt payable. Paymet has been stopped oncheck number 555 which was
drawn in payment of an account payable. The payee cannot be located. The cash balance per
ledger on August 31, 2019 is
VAD C
1946
In a Nutshell (ULO 4)
Activity 6
Inreconciling the cash balance on December 31,2019 with that showninthe bank balance, Red
Company gathered the following facts:
Balance per bank statement
Outstanding checks
Deposit in transit
Service charge
Proceeds of bank loan, December 1, discounted for 6 months at
12%, not recorded on company books
4,000,000
600,000
475,000
10,000
940,000
- 95-
OUM
College of Accounting Education
3F, Business & Engineering Building
Matina, Davao City
Phone No.: (082)300-5456 Local 137
The University of Mindanao
Customer's check charged back by bank for absence of counter
signature
Deposit of P100,000 incorrectly recorded by bank as
Check of Rid Company charged by bank against Red Company
50,000
10,000
150,000
account
Customer's note collected by bank in favor of Red Company.
Face
Interest
Total
Collection fee
400,000
40,000
440,000
5,000
435,000
Erroneous debit memo of December 28, to charge company's
account with settlement of bank loan
Deposit of Rid Company credited to Red account
200,000
300,000
Requirement: Prepare a bank reconciliation.
Q&A list
Do you have any question for clarification?
Questions/Issues
Arswers
1.
2.
3.
1
3.
4.
5.
4.
5.
INDAN
OF MI

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 3 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions