ACTIVITY 3: BANK RECONCILIATIONOn Oct. 31, 2021, Dark Co's cash balance per records is P7,450, while the balance per bankstatement is P8,510. The following information is determined:a. The bank statement reflects a P780 deposit that is not yet recorded in the books. Thedeposit pertains to a collection of note receivable with a principal balance of P700; thedifference represents the interest on the noteb. The bank statement also reflects a P25 withdrawal representing service charges for themonthc. Dark Co. erroneously recorded a check drawn for P140 as P410. The check, which ispayment for an account payable, cleared the bank at the correct amount.d. Dark Co. erroneously recorded a P910 collection of an amount receivable as P190. Thebank statement reflects the correct amount of deposite. A P1,900 check deposit on Oct. 31 is not yet reflected in the bank statementf. The following checks drawn by Dark Co. are not yet presented to the bank for payment:Check #075 for P325, Check #080 for P100, and Check #094 for P700.Requirement:1. Prepare the bank reconciliation for the month of October

Answered: On Oct. 31, 2021, Dark Co's cash…

On Oct. 31, 2021, Dark Co's cash balance per records is P7,450, while the balance per bank statement is P8,510. The following information is determined:

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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Question

ACTIVITY 3: BANK RECONCILIATION
On Oct. 31, 2021, Dark Co's cash balance per records is P7,450, while the balance per bank
statement is P8,510. The following information is determined:
a. The bank statement reflects a P780 deposit that is not yet recorded in the books. The
deposit pertains to a collection of note receivable with a principal balance of P700; the
difference represents the interest on the note
b. The bank statement also reflects a P25 withdrawal representing service charges for the
month
c. Dark Co. erroneously recorded a check drawn for P140 as P410. The check, which is
payment for an account payable, cleared the bank at the correct amount.
d. Dark Co. erroneously recorded a P910 collection of an amount receivable as P190. The
bank statement reflects the correct amount of deposit
e. A P1,900 check deposit on Oct. 31 is not yet reflected in the bank statement
f. The following checks drawn by Dark Co. are not yet presented to the bank for payment:
Check #075 for P325, Check #080 for P100, and Check #094 for P700.
Requirement:
1. Prepare the bank reconciliation for the month of October

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