As the new accountant of Villain Corn, you were assigned to prepare the bank reconciliation statement for the year-end of 2020. The following are the given: Cash on book records before reconciliation was P 900.000 Cash per bank statements before reconciliation was P 762,000 Money to deposit on December 31 amounting to P 130,000 was sent to the bank late. This was reflected in the books but not on the bank Outstanding checks totaled P41,000 as of December 31. Bank service charges for December of P 110,000. A customer paid directly to the bank without informing the corporation, P 68,000. Villain made a payment using cash from the bank amounting to P 18,000 but it was recorded in the book as 14,000. The bank erroneously charged 3.000 to Villain Corp but actually is should be charged to Enemy Corp. Here's your guide to accomplish this output. Step 1. Locate the beginning Cash balance of the company. Note all information is given in the problem. Your task is to identify and arrange them according to the format presented in the lecture note. Step 2. Next, find the book reconciliation items like Credit Memo and Debit Memo. Step 3. After that, look for the item in the letter above for an ERROR made by the company. Analyze this error if the effect is overstating or understating the cash. If the error is overstating the amount of cash, deduct this erroneous amount. If the error is understating the cash balance, add the amount to correct it. Step 4. This time, it's checking the bank balance. Find the amount representing the cash balance statement in the bank. Step 5. Next look for the Deposit in transit and Outstanding check. If you forgot how to deal with this go back with the lecture notes. Step 6. After that. look for the item in the letter above for an ERROR made by the bank. Analyze this error if the effect is overstating or understating the cash in the bank. If the error is overstating the amount of cash, deduct this erroneous amount. If the error is understating the cash balance, add the amount to correct it. (please show detailed solution for reference)
As the new accountant of Villain Corn, you were assigned to prepare the
Cash per bank statements before reconciliation was P 762,000
Money to deposit on December 31 amounting to P 130,000 was sent to the bank late. This was reflected in the books but not on the bank
Outstanding checks totaled P41,000 as of December 31.
Bank service charges for December of P 110,000.
A customer paid directly to the bank without informing the corporation, P 68,000.
Villain made a payment using cash from the bank amounting to P 18,000 but it was recorded in the book as 14,000.
The bank erroneously charged 3.000 to Villain Corp but actually is should be charged to Enemy Corp.
Here's your guide to accomplish this output.
Step 1. Locate the beginning Cash balance of the company. Note all information is given in the problem. Your task is to identify and arrange them according to the format presented in the lecture note.
Step 2. Next, find the book reconciliation items like Credit Memo and Debit Memo.
Step 3. After that, look for the item in the letter above for an ERROR made by the company. Analyze this error if the effect is overstating or understating the cash. If the error is overstating the amount of cash, deduct this erroneous amount. If the error is understating the cash balance, add the amount to correct it.
Step 4. This time, it's checking the bank balance. Find the amount representing the cash balance statement in the bank.
Step 5. Next look for the Deposit in transit and Outstanding check. If you forgot how to deal with this go back with the lecture notes.
Step 6. After that. look for the item in the letter above for an ERROR made by the bank. Analyze this error if the effect is overstating or understating the cash in the bank. If the error is overstating the amount of cash, deduct this erroneous amount. If the error is understating the cash balance, add the amount to correct it.
(please show detailed solution for reference)
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