Alpha company provided the followinginformation for the month of December: Cash balance per ledger 5,000,000 Cash balance per bank statement 5,500,000 Proceeds of bank loan discounted on December 1 for one year at 14% 516,000 Undeposited collections on December 31300,000 Check of Omega Company had been incorrectly deducted by bank from Alpha Company account 50,000 Check of Alpha Company in payment ofan account payable had been recorded by the depositor as P20,000. The correctamount is 200,000 The ledger account for cash was the only cash account kept by the entity.It included a petty cash account comprised of the following items: Currency and coin 4,000 Supplies 2,000 Transportation 3,000 Postage1,000 Deposit of Omega Company credited by bank to the account of Alpha Company 130,000 Deposit of December 27 omitted from bankstatement 150,000 Outstanding checks 544,000 Requirement: (1) Prepare a bank reconciliation using theadjusted balance approach.(2) Prepare adjusting entries on December
Alpha company provided the followinginformation for the month of December: Cash balance per ledger 5,000,000 Cash balance per bank statement 5,500,000 Proceeds of bank loan discounted on December 1 for one year at 14% 516,000 Undeposited collections on December 31300,000 Check of Omega Company had been incorrectly deducted by bank from Alpha Company account 50,000 Check of Alpha Company in payment ofan account payable had been recorded by the depositor as P20,000. The correctamount is 200,000 The ledger account for cash was the only cash account kept by the entity.It included a petty cash account comprised of the following items: Currency and coin 4,000 Supplies 2,000 Transportation 3,000 Postage1,000 Deposit of Omega Company credited by bank to the account of Alpha Company 130,000 Deposit of December 27 omitted from bankstatement 150,000 Outstanding checks 544,000 Requirement: (1) Prepare a bank reconciliation using theadjusted balance approach.(2) Prepare adjusting entries on December
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Alpha company provided the followinginformation for the month of December:
Cash balance per ledger 5,000,000
Cash balance per bank statement 5,500,000
Proceeds of bank loan discounted on December 1 for one year at 14% 516,000
Undeposited collections on December 31300,000
Check of Omega Company had been incorrectly deducted by bank from Alpha Company account 50,000
Check of Alpha Company in payment ofan account payable had been recorded by the depositor as P20,000. The correctamount is 200,000
The ledger account for cash was the only cash account kept by the entity.It included a petty cash account comprised of the following items:
Currency and coin 4,000
Supplies 2,000
Transportation 3,000
Postage1,000
Deposit of Omega Company credited by bank to the account of Alpha Company 130,000
Deposit of December 27 omitted from bankstatement 150,000
Outstanding checks 544,000
Requirement:
(1) Prepare a bank reconciliation using theadjusted balance approach.(2) Prepare adjusting entries on December
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