Problem 2-2 (IAA)Sensible Company provided the following ledger account of thecash in bank maintained with Second Bank:SECOND BANKDec. 1 Balance6 Deposit12 Deposit24 Deposit31 Deposit100,00030,00040,00050,00060,000Dec. 1 Check No. 771. 20,0005,00035,00015,00030,00025,00040,0007727737747754610141824776777The following bank statement was received from the SecondBank by Sensible Company.DateChecksDepositsDec. 1 BalanceCheck No.Balance130,00076810,00020,0005,00035,00015,00052,0008,00010,0005,0001'771477277330,00040,000127741277624104250,00045,000 СМ28 NSF check· 28 Service chargeCS a. Prepare a bank reconciliation statement on December 31.Other informati on1. Sensible Company reconciled its bank balance on.November 30 with two checks, No. 768 for P10,000 andNo. 770 for P20,000 outstanding.2. Check No. 1042 was drawn by Sensitive Company.The bank charged it in error to the account of SensibleCompany.3. Check No. 776 was correctly drawn for P52,000 in paymentof account.The amount P25,000 was entered in the books of originalentry.4. The bank credit on December 28 represents the proceedsof a P50,000 note, less a collection fee of P5,000 collectedby the bank and credited to the account.5. The NSF check was received from a customer in paymentof account.Required:b. Prepare adjusting entries on December 31.

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Answered: Problem 2-2 (IAA) Sensible Company…

Problem 2-2 (IAA) Sensible Company provided the following ledger cash in bank maintained with Second Bank: SECOND BANK Dec. 1 Balance 100,000 Dec. 1 Check No.

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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