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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.

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
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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Problem 2-2 (IAA) Sensible Company provided the following ledger account of the cash in bank maintained with Second Bank: SECOND BANK Dec. 1 Balance 6 Deposit 12 Deposit 24 Deposit 31 Deposit 100,000 30,000 40,000 50,000 60,000 Dec. 1 Check No. 771. 20,000 5,000 35,000 15,000 30,000 25,000 40,000 772 773 774 775 4 6 10 14 18 24 776 777 The following bank statement was received from the Second Bank by Sensible Company. Date Checks Deposits Dec. 1 Balance Check No. Balance 130,000 768 10,000 20,000 5,000 35,000 15,000 52,000 8,000 10,000 5,000 1' 771 4 772 773 30,000 40,000 12 774 12 776 24 1042 50,000 45,000 СМ 28 NSF check · 28 Service charge CS
Transcribed Image Text:Problem 2-2 (IAA) Sensible Company provided the following ledger account of the cash in bank maintained with Second Bank: SECOND BANK Dec. 1 Balance 6 Deposit 12 Deposit 24 Deposit 31 Deposit 100,000 30,000 40,000 50,000 60,000 Dec. 1 Check No. 771. 20,000 5,000 35,000 15,000 30,000 25,000 40,000 772 773 774 775 4 6 10 14 18 24 776 777 The following bank statement was received from the Second Bank by Sensible Company. Date Checks Deposits Dec. 1 Balance Check No. Balance 130,000 768 10,000 20,000 5,000 35,000 15,000 52,000 8,000 10,000 5,000 1' 771 4 772 773 30,000 40,000 12 774 12 776 24 1042 50,000 45,000 СМ 28 NSF check · 28 Service charge CS
a. Prepare a bank reconciliation statement on December 31. Other informati on 1. Sensible Company reconciled its bank balance on. November 30 with two checks, No. 768 for P10,000 and No. 770 for P20,000 outstanding. 2. Check No. 1042 was drawn by Sensitive Company. The bank charged it in error to the account of Sensible Company. 3. Check No. 776 was correctly drawn for P52,000 in payment of account. The amount P25,000 was entered in the books of original entry. 4. The bank credit on December 28 represents the proceeds of a P50,000 note, less a collection fee of P5,000 collected by the bank and credited to the account. 5. The NSF check was received from a customer in payment of account. Required: b. Prepare adjusting entries on December 31.
Transcribed Image Text:a. Prepare a bank reconciliation statement on December 31. Other informati on 1. Sensible Company reconciled its bank balance on. November 30 with two checks, No. 768 for P10,000 and No. 770 for P20,000 outstanding. 2. Check No. 1042 was drawn by Sensitive Company. The bank charged it in error to the account of Sensible Company. 3. Check No. 776 was correctly drawn for P52,000 in payment of account. The amount P25,000 was entered in the books of original entry. 4. The bank credit on December 28 represents the proceeds of a P50,000 note, less a collection fee of P5,000 collected by the bank and credited to the account. 5. The NSF check was received from a customer in payment of account. Required: b. Prepare adjusting entries on December 31.
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