Bank Reconciliation ActivityThe accounting records and bank statement of Entity A shows the following information: (The attached picture)Additional Information:a. The payments of P2,000 and P50,000 shown on the bank statement pertain to the cost of checkbook requested from the bank and the monthly amortization of a bank loan,respectively. The loan payment includes payment for interest of P8,000.b. Deposits shown on the bank statement but not on the cash ledger represent collections of accounts receivable.Requirements:1. Prepare the bank reconciliation.2. Prepare the journal entries to record the adjusting entries on the books of Entity A. SUBSIDIARY LEDGERCASH IN BANK - BPI CURRENT ACCOUNTDebit CreditBalanceDescriptionBal. forwardedDate6/1881,0006/11Check #1113130,800750,2006/15Check #1114220,000530,2006/16Deposit295,800826,0006/22 Deposit670,0001,496,0006/24Check #111580,0001,416,0006/28Check #1116380,0001,036,0006/29Deposit160,0001,196,000METROBANKBANK STATEMENT - ENTITY ADatDescriptionDebitCreditBalancee6/1Bal. forwarded881,0006/10 Deposit6/15 | Payment350,000 1,231,0002,0001,229,0006/15Check #1114220,0001,009,0006/16Deposit6/20| Payment6/22 | Deposit295,8001,304,80050,0001,254,800670,0001,924,8006/24Check #111580,0001,844,8006/26Check #1113130,8001,714,0006/28 Deposit410,000 2,124,000

Ideally cash balance as per cashbook and bank balance as per bank statement should reconcile with…

Answered: Bank Reconciliation Activity The…

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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Bank Reconciliation Activity

The accounting records and bank statement of Entity A shows the following information: (The attached picture)

Additional Information:
a. The payments of P2,000 and P50,000 shown on the bank statement pertain to the cost of checkbook requested from the bank and the monthly amortization of a bank loan,respectively. The loan payment includes payment for interest of P8,000.

b. Deposits shown on the bank statement but not on the cash ledger represent collections of accounts receivable.

Requirements:
1. Prepare the bank reconciliation.
2. Prepare the journal entries to record the adjusting entries on the books of Entity A.

SUBSIDIARY LEDGER
CASH IN BANK - BPI CURRENT ACCOUNT
Debit Credit
Balance
Description
Bal. forwarded
Date
6/1
881,000
6/11
Check #1113
130,800
750,200
6/15
Check #1114
220,000
530,200
6/16
Deposit
295,800
826,000
6/22 Deposit
670,000
1,496,000
6/24
Check #1115
80,000
1,416,000
6/28
Check #1116
380,000
1,036,000
6/29
Deposit
160,000
1,196,000
METROBANK
BANK STATEMENT - ENTITY A
Dat
Description
Debit
Credit
Balance
e
6/1
Bal. forwarded
881,000
6/10 Deposit
6/15 | Payment
350,000 1,231,000
2,000
1,229,000
6/15
Check #1114
220,000
1,009,000
6/16
Deposit
6/20| Payment
6/22 | Deposit
295,800
1,304,800
50,000
1,254,800
670,000
1,924,800
6/24
Check #1115
80,000
1,844,800
6/26
Check #1113
130,800
1,714,000
6/28 Deposit
410,000 2,124,000

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