Bentilador Mo Co. gathered the following information In reconciling the cash balance on December 31, 2021 with that shown in the bank statement: Balance per bank statement P4,000,000 Balance per cash book 2,700,000 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 book - P940,000 Customer’s check charged back by bank for absence stop payment P50,000 Deposit of P100,000 incorrectly recorded by bank as P10,000 Check of Bentilador Mo Co. charged by bank against Rancor company’s account P150,000 Customer’s note collected by bank in favor of Rancor company net of ( Face amount of P400,000 Interest income P40,000 collection fee of P5,000) P435,000 Erroneous debit memo of December 28, to charge company ‘s account with settlement of bank loan P200,000 Deposit of Bentilador Mo Co. credited to Rancor account P300,000 REQUIREMENTS: A. How much the net amount of cash in bank account to be debited for the book reconciling items. B. Based on Rancor Company above, how much corrected balance per bank? C. Based on Rancor Company above, How much service charge to be recognized and adjusted?
Bentilador Mo Co. gathered the following information In reconciling the cash balance on December 31, 2021 with that shown in the bank statement:
Balance per bank statement P4,000,000
Balance per
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 book - P940,000
Customer’s check charged back by bank for absence stop payment P50,000
Deposit of P100,000 incorrectly recorded by bank as P10,000
Check of Bentilador Mo Co. charged by bank against Rancor company’s account P150,000
Customer’s note collected by bank in favor of Rancor company net of ( Face amount of P400,000 Interest income P40,000 collection fee of P5,000) P435,000
Erroneous debit memo of December 28, to charge company ‘s account with settlement of bank loan P200,000
Deposit of Bentilador Mo Co. credited to Rancor account P300,000
REQUIREMENTS:
A. How much the net amount of cash in bank account to be debited for the book reconciling items.
B. Based on Rancor Company above, how much corrected balance per bank?
C. Based on Rancor Company above, How much service charge to be recognized and adjusted?
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