I. COMPREHENSIVE PROBLEMS 1. In reconciling the cash balance on December 31 with that shown in the bank statement, Sam Company provided the following information. 4,000,000 2,700,000 600,000 475,000 10,000 Balance per bank statement Balance per book Outstanding checks Deposit in transit Service charge Proceeds of bank loan, December 1, discounted for 6 months at 12%, not recorded on Sam Company Customer check charged back by bank for absence of counter signature Deposit of P100,000 incorrectly recorded by bank as Check of Sim Company charged by bank against Sam account 940,000 50,000 10,000 150,000 Customer's note collected by bank in favor of Sam Company. Face 400,000 40,000 440,000 5,000 Interest Total Collection fee Erroneous debit memo of December 28 435,000 to charge Sam account with settlement of bank loan 200,000 300,000 Deposit of Sim Company credited to Sam account Required: Prepare a bank reconciliation under the adjusted balance method. Make adjusting entries.
I. COMPREHENSIVE PROBLEMS 1. In reconciling the cash balance on December 31 with that shown in the bank statement, Sam Company provided the following information. 4,000,000 2,700,000 600,000 475,000 10,000 Balance per bank statement Balance per book Outstanding checks Deposit in transit Service charge Proceeds of bank loan, December 1, discounted for 6 months at 12%, not recorded on Sam Company Customer check charged back by bank for absence of counter signature Deposit of P100,000 incorrectly recorded by bank as Check of Sim Company charged by bank against Sam account 940,000 50,000 10,000 150,000 Customer's note collected by bank in favor of Sam Company. Face 400,000 40,000 440,000 5,000 Interest Total Collection fee Erroneous debit memo of December 28 435,000 to charge Sam account with settlement of bank loan 200,000 300,000 Deposit of Sim Company credited to Sam account Required: Prepare a bank reconciliation under the adjusted balance method. Make adjusting entries.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Prepare a bank reconciliation under the adjusted balance method. Make
Transcribed Image Text:I.
COMPREHENSIVE PROBLEMS
1. In reconciling the cash balance on December 31 with that shown in the bank statement, Sam
Company provided the following information.
Balance per bank statement
Balance per book
Outstanding checks
Deposit in transit
Service charge
Proceeds of bank loan, December 1,
discounted for 6 months at 12%, not
recorded on Sam Company
Customer check charged back by bank
for absence of counter signature
Deposit of P100,000 incorrectly
recorded by bank as
Check of Sim Company charged by bank
against Sam account
4,000,000
2,700,000
600,000
475,000
10,000
940,000
50,000
10,000
150,000
Customer's note collected by bank in favor of Sam Company.
Face
400,000
40,000
440,000
5,000
Interest
Total
Collection fee
Erroneous debit memo of December 28
435,000
to charge Sam account with
settlement of bank loan
200,000
300,000
Deposit of Sim Company credited to
Sam account
Required: Prepare a bank reconciliation under the adjusted balance method. Make adjusting entries.
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