FABM 2 Q2 PT1The accounting records of BEE Company show the summary data of its cash receipts and payments forNovember 2019. Its November Cash Balance has P42,230.00; its Total Cash Receipts is P40,000.00, TotalChecks issued is P25,000.00. The company received its Bank Statement indicating a balance ofP82,000.00. The following reconciling items were discovered.m No. 1-A deposit of cash receipts P3,000.00 of November 30 is too late to include in the bankstatement.Item No. 2- 0utstanding checks were: No. 1234-P2,652.00; No. 1235-P6,557.00; No. 1236-P6,095.00.Item No. 3- The bank collected a note left for collection amounting to P20,000.00 plus interest earnedof P600.00Item No. 4-Check No. 1237-P P690.00 was incorrectly charged by the bank as P960.00 ItemNo. 5-Check No. 1238-P cleared by the bank with P4,200.00 has been recorded in the company's book asP2,400.00. This was for the payment of the creditor's account.Item No. 6-The customer returned the check for NSF, P7,800.00.Item No. 7-The bank service charges for the month are P1,864.00.Note: To compute for Balance per Book is: Add Cash Balance and Total Cash Receipts less the TotalChecks IssuedHow much is the Balance per Book?Requirements=Present the Reconciliation per Bank StatementPresent the Reconciliation per Company's BookPresents the adjusted journal of the computed reconciliation.1.2.3.

Bank Reconciliation Statement The purpose of preparing the bank reconciliation statement is to…

Checks Issued How much is the Balance per Book? Requirements= 1. Present the Reconciliation per Bank Statement Present the Reconciliation per Company's Book Presents the adjusted journal of the computed reconciliation. 2. 3.

Checks Issued How much is the Balance per Book? Requirements= 1. Present the Reconciliation per Bank Statement Present the Reconciliation per Company's Book Presents the adjusted journal of the computed reconciliation. 2. 3.

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

Q: On a bank reconciliation, which of the following is added to the balance per book? Interest earned…

A: In order to make sure that their bank records—bank statements—and their own accounting…

Q: Gibson Energy Ltd.'s general ledger account for Cash in Bank showed the following at December 31,…

A: Bank reconciliation statement refers to a reconciliation between the entries entered in the cash…

Q: he amount of the outstanding checks is included on the bank reconciliation as a(n) Select one: A.…

A: >Outstanding checks are the checks that have been written and given to a party, but that party…

Q: The explanation of the differences between the cash account balance according to the company’s book…

A: The question is multiple choice question. Required Choose the Correct Option.

Q: Bank reconciliationThe following data were gathered to use in reconciling the bank accountof Reddan…

A: Solution a: Reddan Company Bank Reconciliation Balance per Bank $25,750 Add: Deposit in…

Q: Which one of the four methods of payments creates an accounts receivable? Select one: a.…

A: Accounts receivable: Accounts receivable refers to the amounts to be received within a short period…

Q: Which journal entries is correct when a business entity collects an accounts receivable? A. Cash -…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: A bank statement Oa. shows a company the financial position of the bank as of a certain date Ob. is…

A: Bank statement is a record maintained by a bank for every customer that he/she transacts with it.…

Q: The entry to record interest expense on a bank loan payable is a a. debit to interest expense and…

A: The adjustment entries are made at the end of the year to adjust the revenues and expenses of the…

Q: When we get a line of credit from the bank Check All That Apply a)Assets increase b)Expenses…

A: The assets are the accounts owned by the business. The liabilities are the amount due to be paid to…

Q: Multiple Choice Questions Which of the following items decreases the balance in the accounts…

A: Accounts receivable: It can be defined as an asset on the company’s balance sheet that reflects the…

Q: Journal Entry for Payee when giving note * to either the maker or a bank Debit Cash, Credit Notes…

A: Notes receivable is considered a negotiable instrument. It is a written promise to receive a certain…

Q: An adjusting entry is required for: Select one: a. Deposit in transit. O b.Outstanding checks. O c…

A: Adjusting entries: Adjusting entries are those entries which are recorded at the end of the year, to…

Q: Which of the following is supported with a debit memorandum? a.proceeds of bank loan b.collections…

A: The debit memorandum is issued by the bank to notify the depositor about the deductions made from…

Q: Deposits other than customer payments are entered using: a. Receive Payments b. Pay Bills c. Bank…

A: A bank account is an account with a bank that is used to deposit money and withdraw money. The…

Q: A) bought equipment for cash $48,900 B) Paid $14,700 on long-term note payable C) issued new…

A: Sharp Screen Films Inc. Cash Flow Statement (Indirect Method) For the year ended December 31…

Q: Instructions The following data were gathered to use in reconciling the bank account of Reddan…

A: Bank reconciliation is prepared to reconcile the bank statement balance and bank balance as per…

Q: Which of the following transactions will require a journal entry? Indicate if it will be a debit or…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: 3. Should a note receivable from a related party be included in the balance sheet with notes…

A: Balance sheet: Balance sheet is a summary of assets, liabilities, and equity account that reports…

Q: Timing difference occurs when the bank records an amount before the company does. Group of answer…

A: Bank reconciliation statement: This statement shows the deposits, withdrawals and other charges and…

Q: What entry is required in the company's accounts to record outstanding checks? Select one: A. no…

A: Outstanding checks - Outstanding Checks are written but not received yet, not cleared, Cash has not…

Q: Instructions: Prepare a bank reconciliation statement. Mr. Jimin received his August 2020 bank…

A: Bank reconciliation: It is a statement drawn up by the business to verify the cash book balance with…

Q: In a bank reconciliation, a deposit in transit is A. deducted from the bank balance on the bank…

A: Bank reconciliation is prepared to reconcile the balance as per bank book and balance as per cash…

Q: ______best describes the classification and normal balance of the accounts receivable account?

A: The Answer :

Q: B. trial balance C. chart of accounts D. income statement 8. Sales to customers who use bank…

A: 7.(b) trial balance Trial balance is used to check that total debits equal total credits and shows…

Q: Requirements: a. Prepare adjusting entries to correct accounts receivables. b. Prepare a partial…

A: Account receivables:Account’s receivables refer to the amount of credit sales for which the payment…

Q: A company repays its bank borrowings. The entry to record that transaction should be Group of…

A: Borrowing means where business taken loan from outsider to be used in business and repaid later.

Q: A "receipt on account" results in a credit to: An A/P account Bank An A/R account Capital

A: Receipt on account means, cash received from previously made credit sales.

Q: Outstanding checks are checks the bank has paid and deducted from the customer's account. True or…

A: Outstanding checks are checks that have been issued for payment but have not yet been presented to…

Q: Which type of checking account pays interest on the mean balance of the account during a particular…

A: The checking account are important part of banking system. A checking account is highly liquid…

Q: Which of the following is an appropriate reconciling item to the balance per bank in a bank…

A: Bank reconciliation refers to the method used by the company to match the bank statement as well as…

Q: QUIXNO COMPANY Bank Reconciliation November 30, 2018 Cash balance per bank Add: Deposits in transit…

A: What is Bank Reconciliation: A statement is prepared to reconcile the balance as per the cash book…

Q: Accompanying the bank statement was a debit memo for bank service charges. What entry is required in…

A: Step 1 Expense is the amount incurred by the organization to generate revenue. It is shown in the…

Q: Match each item to a bank statement adjustment, a company books adjustment, or either.

A: These are related to bank reconciliation statements .

Q: Which of the following items must be deducted to the balance per ledger in preparing a bank…

A: Service charges: Banks debited the charges for maintain of account with bank and for the transaction…

Q: Which of the following will increase the balance of accounts receivable? Group of answer choices…

A: Option B and D are incorrect because these will decrease the balance of accounts receivables. Option…

Q: Journal entry: If a company uses the ALLOWANCE method for valuing Accounts Receivable on the balance…

A: If company uses allowance method then at the end of the year business will evaluate the estimated…

Q: The difference between book cash and bank cash, representing the net effect of checks in the process…

A: Average Daily Receipts are calculated by dividing the total receipts generated in a period by the…

Q: What is the adjusting entry of Bank Reconciliation : Credit Memo- Proceed Bank Loan

A: Credit memo - proceed bank loan : A bank's credit memo is defined as the item where the bank account…

Q: Q- 4211 Which journal entry recognizes that an NSF check had been deposited by a company and…

A: NSF check stands for non-sufficient funds check. It is recorded when a check is deposited by the…

Q: A journal entry would need to be made for which of the following adjustments on a…

A: Bank reconciliation statement: A bank reconciliation statement (BRS) is a statement which is used to…

Q: Using general GL codes (expense, receivable, revenue, etc.), write out the JE necessary to post each…

A: A business's accounting records can contain information about a transaction by creating a journal…

Q: Which one is the correct formula for BRS Select one: O a. Balance as per Books- Interest Income from…

A: BRS is a statement that compares the cash balance on a company’s balance sheet.

Q: In a bank reconciliation, an EFT cash payment is A. added to the bank balance in the general ledger…

A: Bank reconciliation is prepared to reconcile the balance as per bank book and balance as per cash…

Concept explainers

Bank Reconciliation Statement

As a commerce student, we all know that every business has to maintain a cash book to maintain all his cash and bank transactions. A cash book is a book which has two columns, one cash column and one bank column.

Question

FABM 2 Q2 PT1
The accounting records of BEE Company show the summary data of its cash receipts and payments for
November 2019. Its November Cash Balance has P42,230.00; its Total Cash Receipts is P40,000.00, Total
Checks issued is P25,000.00. The company received its Bank Statement indicating a balance of
P82,000.00. The following reconciling items were discovered.
m No. 1-A deposit of cash receipts P3,000.00 of November 30 is too late to include in the bank
statement.
Item No. 2- 0utstanding checks were: No. 1234-P2,652.00; No. 1235-P6,557.00; No. 1236-P6,095.00.
Item No. 3- The bank collected a note left for collection amounting to P20,000.00 plus interest earned
of P600.00
Item No. 4-Check No. 1237-P P690.00 was incorrectly charged by the bank as P960.00 Item
No. 5-Check No. 1238-P cleared by the bank with P4,200.00 has been recorded in the company's book as
P2,400.00. This was for the payment of the creditor's account.
Item No. 6-The customer returned the check for NSF, P7,800.00.
Item No. 7-The bank service charges for the month are P1,864.00.
Note: To compute for Balance per Book is: Add Cash Balance and Total Cash Receipts less the Total
Checks Issued
How much is the Balance per Book?
Requirements=
Present the Reconciliation per Bank Statement
Present the Reconciliation per Company's Book
Presents the adjusted journal of the computed reconciliation.
1.
2.
3.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1+96

Step 2

Step 3

Step 4

Step 5

Step by step

Solved in 5 steps

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

Which one of the following would not appear on a bank statement for a checking account? a.Deposits b.Service charges c.Outstanding checks d.Interest earned
multiple choice quetion a.When preparing a bank reconciliation statement and the closing bank statement balance is an overdraft, we begin with the balance in the bank statement and then: add unpresented cheques and deduct outstanding receipts. add outstanding receipts and deduct unpresented cheques. add all receipts and deduct all payments. 4.add all payments and deduct all receipts
In the reconciliation of a bank statement, "deposits in transit" should be:a. added to the unadjusted book balanceb. subtracted from the unadjusted bank balancec. added to the unadjusted bank balanced. subtracted from the unadjusted bank balance
Which of the following adjusts the bank’s balance of cash in a bank reconciliation? a. NSF checks. b. Service fees. c. An error by the company. d. Checks outstanding.
What item on the bank statement that may differ from the company's financial records. NSF check interest earned outstanding checks service charge
Are 1 year certificates of deposit recorded on bank reconciliation?
A bank statement Select one: A. is a bill from the bank for services rendered B. shows a company the financial position of the bank as of a certain date C. shows the activity that increased or decreased the company's account balance D. is a credit reference letter written by the company's bank
A prenumbered document that tells the bank to pay the designated party a specific amount is a A. check B. deposit ticket C. routing number D. remittance advice
Instructions: Calculate the following Reconciliation for Hancock, Reid, & Carson for the period ending March 31, 2021. Prepare the March bank reconciliation statement on the blank statement provided for Hancock, Reid, & Carson Ltd. according to the following information: • Royal Bank of Canada statement says the current balance is $17,864.12. • There was an NSF cheque #1706 from Peter Bartrum in the amount of $1,870.54. There are bank service charges of $60.00; there are overdraft interest charges of $86.90; there is a preauthorized loan payment charge of $617.44; the bank paid Hancock, Reid & Carson Ltd. $204.12 interest on a revolving T-bill investment, and there is a charge of $54.00 for the annual rental of a safety deposit box. Upon comparing the bank statement to the company's cheque register, you noted that the final balance in the cheque register was $16,627.01 and that cheques #588 for $198.27, #592 for $i,846.40, #596 for $374.80 and #599 for $1,320.40 are outstanding. You…
Prepare adjusting journal entries to reconcile the book and bank balances
IMPORTANT Record the entries in the order the items are listed on the bank reconciliation report. When entering numbers, please do not use commas or dollar signs. Journal Date 2023 Accounts and Explanations 0 น PR Debit Page 52 Credit
More info a. Outstanding checks, $670. b. Deposits in transit, $1,500. C. NSF check from customer, no. 548, for $175. d. Bank collection of note receivable of $800, and interest of $80. Interest earned on bank balance, $20. e. f. g. h. Service charge, $10. The business credited Cash for $200. The correct amount was $2,000. The bank incorrectly decreased the business's by $350 for a check written by another business. X