— Prepare bank reconciliation statement for the month of August.— Prepare the adjusting entries. Cash bałance per accounting periodCash balance per bank statementBank service charge1,719,0003,195,00010,000Debit memo for the cost of printed checks deliveredby the bank, the charge has not been recordedin the accounting record12,000685,000500,000Outstanding checksDeposit of May 30 not recorded by bank until June 1Proceeds of bank loan on May 30, not recorded in theaccounting record, net of interest of P30,000Proceeds from a customer promissory note, principalamount P800,000 collected by the bank not takenup in the accounting record with interestCheck no. 1086 issued to a supplier entered in theaccounting record as 210,000 but deducted in thebank statement at an erroneous amount ofStolen check lacking unauthorized signature deducted fromMcdo's account by the bank in errorCustomer check returned by the bank marked NSF,indicating that the customer balance was notadequate to cover the check; no entry has been madein the accounting record to record the returned check570,000810,000120,00080,00077,000

Introduction: Company provides the following data for the month of August. Cash balance as per…

Answered: — Prepare bank reconciliation statement…

Business

Accounting

— Prepare bank reconciliation statement for the month of August. — Prepare the adjusting entries.

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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Concept explainers

Bank Reconciliation Statement

As a commerce student, we all know that every business has to maintain a cash book to maintain all his cash and bank transactions. A cash book is a book which has two columns, one cash column and one bank column.

Question

— Prepare bank reconciliation statement for the month of August.

— Prepare the adjusting entries.

Cash bałance per accounting period
Cash balance per bank statement
Bank service charge
1,719,000
3,195,000
10,000
Debit memo for the cost of printed checks delivered
by the bank, the charge has not been recorded
in the accounting record
12,000
685,000
500,000
Outstanding checks
Deposit of May 30 not recorded by bank until June 1
Proceeds of bank loan on May 30, not recorded in the
accounting record, net of interest of P30,000
Proceeds from a customer promissory note, principal
amount P800,000 collected by the bank not taken
up in the accounting record with interest
Check no. 1086 issued to a supplier entered in the
accounting record as 210,000 but deducted in the
bank statement at an erroneous amount of
Stolen check lacking unauthorized signature deducted from
Mcdo's account by the bank in error
Customer check returned by the bank marked NSF,
indicating that the customer balance was not
adequate to cover the check; no entry has been made
in the accounting record to record the returned check
570,000
810,000
120,000
80,000
77,000

Definition Definition Entries made at the end of every accounting period to precisely replicate the expenses and revenue of the current period. This is also known as end of period adjustment. It can also refer to financial reporting that corrects errors made previously in the accounting period. Every adjustment entry affects at least one real account and one nominal account.

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