Prepare reconciliations per bank and per book. On May 31, 2020, MAKISIG Fabricators had a cash balance per books of P57,815. The May bank statement from the MALUSOG Development Bank reported a balance of P68,586. A comparison of the statement with the cash account revealed the following facts: • The statement included a debit memo of P300 for the cost of two checkbooks. Cash sales of P8,361.50 on May 12 were deposited in the bank. The cash receipts journal entry and deposit slip were incorrectly made for P8,461.50. The bank credited MAKISIG Fabricators for the correct amount. Outstanding checks at May 31 totaled P12,762.50 and deposits in transit were P9,361.50. • On May 18, the company issued check no. 1181 for P6,580 to Cifra Steel. The check, which cleared in the bank in May, was incorrectly journalized and posted by Makisig Fabricators for P6,850. A P20,000 note receivable was collected by the bank for MAKISIG on May 31 plus P800 interest. The bank charged a collection fee of P200. The only entry made in May by the company for the note was to accrue the interest through May 31. Included in the canceled checks was a check issued by GRASYA Company to E. FLORES for P6,000 that was incorrectly charged to MAKISIG Fabricator. On May 31, the bank statement showed a DAIF charge of P7.100 for the check issued by GOMEZ Realty, a custonmer, to MAKISIG Fabricators on account.
Prepare reconciliations per bank and per book. On May 31, 2020, MAKISIG Fabricators had a cash balance per books of P57,815. The May bank statement from the MALUSOG Development Bank reported a balance of P68,586. A comparison of the statement with the cash account revealed the following facts: • The statement included a debit memo of P300 for the cost of two checkbooks. Cash sales of P8,361.50 on May 12 were deposited in the bank. The cash receipts journal entry and deposit slip were incorrectly made for P8,461.50. The bank credited MAKISIG Fabricators for the correct amount. Outstanding checks at May 31 totaled P12,762.50 and deposits in transit were P9,361.50. • On May 18, the company issued check no. 1181 for P6,580 to Cifra Steel. The check, which cleared in the bank in May, was incorrectly journalized and posted by Makisig Fabricators for P6,850. A P20,000 note receivable was collected by the bank for MAKISIG on May 31 plus P800 interest. The bank charged a collection fee of P200. The only entry made in May by the company for the note was to accrue the interest through May 31. Included in the canceled checks was a check issued by GRASYA Company to E. FLORES for P6,000 that was incorrectly charged to MAKISIG Fabricator. On May 31, the bank statement showed a DAIF charge of P7.100 for the check issued by GOMEZ Realty, a custonmer, to MAKISIG Fabricators on account.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:BANK RECONCILIATION
Prepare reconciliations per bank and per book.
On May 31, 2020, MAKISIG Fabricators had a cash balance per books of P57,815. The May bank
statement from the MALUSOG Development Bank reported a balance of P68,586. A comparison of the
statement with the cash account revealed the following facts:
• The statement included a debit memo of P300 for the cost of two checkbooks.
Cash sales of P8,361.50 on May 12 were deposited in the bank. The cash receipts journal entry and
deposit slip were incorrectly made for P8,461.50. The bank credited MAKISIG Fabricators for the
correct amount.
Outstanding checks at May 31 totaled P12,762.50 and deposits in transit were P9,361.50.
• On May 18, the company issued check no. 1181 for P6,580 to Cifra Steel. The check, which cleared in
the bank in May, was incorrectly journalized and posted by Makisig Fabricators for P6,850.
A P20,000 note receivable was collected by the bank for MAKISIG on May 31 plus P800 interest. The
bank charged a collection fee of P200. The only entry made in May by the company for the note was
to accrue the interest through May 31.
Included in the canceled checks was a check issued by GRASYA Company to E. FLORES for P6,000
that was incorrectly charged to MAKISIG Fabricator.
• On May 31, the bank statement showed a DAIF charge of P7.100 for the check issued by GOMEZ
Realty, a custonmer, to MAKISIG Fabricators on account.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
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.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education