On May 31, Sasa Company has a cash balance per books of P339,075. The bank statement from BPI on that date showed a balance of P340,230. A comparison of the statement with the cash account revealed the following facts: 1. The statement included a debit memo of P2,000 for the printing of additional checks. 2. Cash sales of P41,807.50 on May 12 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for P42,307.50, The bank credited to Sasa Company for the correct amount. 3. Outstanding checks at May 12 totaled P13,812.50. Deposit in transit were P96,807.50. 4. On May 18, the company issued check no. 1181 for P34,250 for Kap Shin, on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Sasa Company for P32,900. 5. A P150,000 note receivable was collected by the bank for Sasa Company on May 31 plus P4,000 interest. The bank charged a collection fee of P1,000. No interest has been accrued on the note. 6. Included with the cancelled check was a check issued by Takomo Company to Sesematwa Company for P30,000 that was incorrectly charged to Sasa Company by the bank. 7. On May 31, the bank statement showed an NSF charge of P35,000 for a check issued by Iceice Baby, a customer, to Sasa Company on account.

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter6: Bank Accounts, Cash Funds, And Internal Controls

Section: Chapter Questions

Problem 5E

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On May 31, Sasa Company has a cash balance per books of P339,075. The bank statement from BPI on that date showed a balance of P340,230. A comparison of the statement with the cash account revealed the following facts: 1. The statement included a debit memo of P2,000 for the printing of additional checks. 2. Cash sales of P41,807.50 on May 12 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for P42,307.50, The bank credited to Sasa Company for the correct amount. 3. Outstanding checks at May 12 totaled P13,812.50. Deposit in transit were P96,807.50. 4. On May 18, the company issued check no. 1181 for P34,250 for Kap Shin, on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Sasa Company for P32,900. 5. A P150,000 note receivable was collected by the bank for Sasa Company on May 31 plus P4,000 interest. The bank charged a collection fee of P1,000. No interest has been accrued on the note. 6. Included with the cancelled check was a check issued by Takomo Company to Sesematwa Company for P30,000 that was incorrectly charged to Sasa Company by the bank. 7. On May 31, the bank statement showed an NSF charge of P35,000 for a check issued by Iceice Baby, a customer, to Sasa Company on account.

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