In auditing Backstraight Boyz Corporation, you obtained the bank statement, cancelled checks, and other memoranda which relate to the company’s bank account for December 2021. In reconciling the bank balance with that shown on the company’s books, you observed the facts set forth below: Balance per bank statement, Dec. 31, 2021 P 47,174 Balance per books, Dec. 31, 2021 19,289 Outstanding checks, Dec. 31, 2021 63,000 Receipts of Dec. 31, 2021, deposited Jan. 2, 2022 6,260 Service charge for November, per bank 1,000 memo of Dec. 15, 2021 Proceeds of bank loan, Dec. 15, 2021, discounted for 3 months at 18% per annum, omitted from company books 47,750 Deposit of Dec. 22, 2021, omitted from bank statement 9,170 Check of Westlight Company, returned on Dec. 21, 2021, for absence of countersignature and redeposited with complete signature on Jan. 3, 2022, no entry on the books have been made for the return or redeposit 77,320 Error on bank statement in entering deposit of Dec. 18, 2021: Correct amount P 1,600 Entered in statement 160 Check No. 021261 of Michael Learns to Rap Company, charged by bank in error to company’s account 13,600 Proceeds of note of ‘N Sink Company, collected by bank, Dec. 10, 2021, not entered in cash book (principal amount of P25,000 plus interest of P1,125, less collection fee) 25,625 Erroneous debit memo of Dec. 28, 2021, to charge company’s account with settlement of bank loan which was paid by check no. 112170 on same date 5,000 Error on bank statement in entering deposit of Dec. 4, 2021: Correct amount P 14,200.62 Entered in statement 12,400.62 Deposit in Men Oppose Company of Dec. 2, 2021, credited in error to this company 3,500 REQUIRED: Prepare a bank reconciliation as of December 31, 2021. Prepare adjusting entries in the books of Backstraight Boyz Corporation. Show supporting computations.

In auditing Backstraight Boyz Corporation, you obtained the bank statement, cancelled checks, and other memoranda which relate to the company’s bank account for December 2021. In reconciling the bank balance with that shown on the company’s books, you observed the facts set forth below: Balance per bank statement, Dec. 31, 2021 P 47,174 Balance per books, Dec. 31, 2021 19,289 Outstanding checks, Dec. 31, 2021 63,000 Receipts of Dec. 31, 2021, deposited Jan. 2, 2022 6,260 Service charge for November, per bank 1,000 memo of Dec. 15, 2021 Proceeds of bank loan, Dec. 15, 2021, discounted for 3 months at 18% per annum, omitted from company books 47,750 Deposit of Dec. 22, 2021, omitted from bank statement 9,170 Check of Westlight Company, returned on Dec. 21, 2021, for absence of countersignature and redeposited with complete signature on Jan. 3, 2022, no entry on the books have been made for the return or redeposit 77,320 Error on bank statement in entering deposit of Dec. 18, 2021: Correct amount P 1,600 Entered in statement 160 Check No. 021261 of Michael Learns to Rap Company, charged by bank in error to company’s account 13,600 Proceeds of note of ‘N Sink Company, collected by bank, Dec. 10, 2021, not entered in cash book (principal amount of P25,000 plus interest of P1,125, less collection fee) 25,625 Erroneous debit memo of Dec. 28, 2021, to charge company’s account with settlement of bank loan which was paid by check no. 112170 on same date 5,000 Error on bank statement in entering deposit of Dec. 4, 2021: Correct amount P 14,200.62 Entered in statement 12,400.62 Deposit in Men Oppose Company of Dec. 2, 2021, credited in error to this company 3,500 REQUIRED: Prepare a bank reconciliation as of December 31, 2021. Prepare adjusting entries in the books of Backstraight Boyz Corporation. Show supporting computations.

Quickbooks Online Accounting

3rd Edition

ISBN:9780357391693

Author:Owen

Publisher:Owen

Chapter8: Budgets And Bank Reconciliations

Section: Chapter Questions

Problem 1.10C

See similar textbooks

Related questions

Question

Balance per bank statement, Dec. 31, 2021 P 47,174
Balance per books, Dec. 31, 2021 19,289
Outstanding checks, Dec. 31, 2021 63,000
Receipts of Dec. 31, 2021, deposited Jan. 2, 2022 6,260
Service charge for November, per bank 1,000
memo of Dec. 15, 2021
Proceeds of bank loan, Dec. 15, 2021, discounted
for 3 months at 18% per annum, omitted from
company books 47,750

Deposit of Dec. 22, 2021, omitted from bank statement 9,170
Check of Westlight Company, returned on Dec. 21, 2021,
for absence of countersignature and redeposited with
complete signature on Jan. 3, 2022, no entry on the
books have been made for the return or redeposit 77,320

Error on bank statement in entering deposit of Dec. 18, 2021:

Correct amount P 1,600

Entered in statement 160

Check No. 021261 of Michael Learns to Rap Company,
charged by bank in error to company’s account 13,600

Proceeds of note of ‘N Sink Company, collected by bank,
Dec. 10, 2021, not entered in cash book (principal amount
of P25,000 plus interest of P1,125, less collection fee) 25,625

Erroneous debit memo of Dec. 28, 2021, to charge
company’s account with settlement of bank loan which
was paid by check no. 112170 on same date 5,000

Error on bank statement in entering deposit of Dec. 4, 2021:

Correct amount P 14,200.62

Entered in statement 12,400.62

Deposit in Men Oppose Company of Dec. 2, 2021,
credited in error to this company 3,500

REQUIRED:

Prepare a bank reconciliation as of December 31, 2021.
Prepare adjusting entries in the books of Backstraight Boyz Corporation. Show supporting computations.

Expert Solution

Step by step

Solved in 3 steps with 3 images

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.