D. The accountant of Borneo Enterprises received the bank statement of the company for the month of December 200B, which showed a credit balance of P 102,365.10. The cash in bank balance as per the general ledger however showed a debit balance of P 96,991.10. The following reconciling items were discovered: 1. A deposit in the amount of P 6,250 made in the afternoon of December 31 was not reflected in the bank statement. 2. The company's total checks issued for the month of December amounted to P 54,326.00 but the cancelled checks returned by the bank amounted to only P 35,022.00. There were no outstanding checks last month. 3. A check payable to Borbon Enterprises for P 900 was erroneously credited by the bank to the account of Borneo Enterprises. 4. A customer paid his account directly to the bank in the amount of P 5,000.00. 5. Checks deposited but returned by the bank marked "DAIF" (Drawn against insufficient fund), P 14,930.00 6. Bank service charge, P 30.00. 7. A check issued for P 3,265.00 in payment of insurance expense was erroneously recorded in the books by the bookkeeper as P 3,625.00. 8. Interest earned, P 1,020. REQUIRED: a. Prepare the Bank Reconciliation Statement. b. Give the adjusting entries necessary.

D. The accountant of Borneo Enterprises received the bank statement of the company for the month of December 200B, which showed a credit balance of P 102,365.10. The cash in bank balance as per the general ledger however showed a debit balance of P 96,991.10. The following reconciling items were discovered: 1. A deposit in the amount of P 6,250 made in the afternoon of December 31 was not reflected in the bank statement. 2. The company's total checks issued for the month of December amounted to P 54,326.00 but the cancelled checks returned by the bank amounted to only P 35,022.00. There were no outstanding checks last month. 3. A check payable to Borbon Enterprises for P 900 was erroneously credited by the bank to the account of Borneo Enterprises. 4. A customer paid his account directly to the bank in the amount of P 5,000.00. 5. Checks deposited but returned by the bank marked "DAIF" (Drawn against insufficient fund), P 14,930.00 6. Bank service charge, P 30.00. 7. A check issued for P 3,265.00 in payment of insurance expense was erroneously recorded in the books by the bookkeeper as P 3,625.00. 8. Interest earned, P 1,020. REQUIRED: a. Prepare the Bank Reconciliation Statement. b. Give the adjusting entries necessary.

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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