Problem 3Serato Company keeps all Its cash In a checking acount. An examination of the entity'saccounting records and bank statement for the month ended December 31, 2020 revealed abank statement balance of P8.469.000 and a book balance of P8,524,000. A deposit ofP950,000 placed in the bank's night depository on December 29 does not appear on the bankStatement. Checks outstanding on December 31 amount to P270, 000. The bank statementsnows that on December 25, the bank collected a note for Serato Company and credited theproceeds of P935,000 to the entity's account. The proceeds included P35,000 interest, all orWich Serato Company earned during the current period, Serato Company has not yet recordedthe said collection. Serato Company discovered that check number 1000759 written inDecember for P183,000 in payment of an account had been recorded in the entity's records asP138,000. Included with the December 31 bank statement was an NSF check for P250,000 thatSerato Company had received from Ana Company on December 20. Serato Company has notyet recorded the returned check. The bank statement shows a P15,000 service charge forDecember.3. The net adjustment to the cash account is:Problem 4The following items were included as cash in the books of Roa Company:P (1,200)5,335Checking account at Security BankChecking account at BPIChecking account at City Trust used for paymentof salaries5,500107Postage stampsEmployee's postdated checkIOU from an employeeA check marked DAIF2,3002001,250500Postal money orderPetty cash fund (P324 in expense receipts)Certificate of time deposit with BPIA gold ring surrendered as security by a customerwho lost his wallet (at market value)5005,0001,5004. The correct amount that should be reported as cash is:Problem 5Racman, Inc. needs P2,000,000 to finance its extension program. Racman, Inc. is negotiating aloan with Metropolis Bank which requires the company to maintain a compensating balance of10% of the loan principal on deposit in a current account at the bank. Pierce, Inc. currentlymaintains a balance of P20,000 in its current account. The current account earns interest of 2%per annum. The interest rate on the loan is 12% per annum.5. What is the effective interest rate on the loan? Part II. Problem SolvingProblem 1The bookkeeper of Tinhay Company recently prepared the following bank reconciliation:Tinhay CompanyBank ReconciliationDecember 31, 2021Balance per bankP 126,420Add:Deposit in transitCharge on checkbook printingError made in recording Check No. 25P 8,700210issued in December1,6005,000NSF check15,510P 141,930TotalDeduct:Outstanding checksNote collected by bank (indudes P50interest)Balance per booksP4,48013,980P 127,9509,500Hoover has P9,100 cash on hand on December 31, 2021.1. The amount Hoover should report as cash on the statement of financial position as ofDecember 31, 2021 should be:Problem 2Sibla, Inc. had the following bank reconciliation at March 31, 2021:Balance per bank, 3/31/2021Deposit in transitP37,20010,30047,500(12,600)34,900TotalOutstanding checksBalance per books, 3/31/2021PData per bank for the month of April 2021 follow:DepositsDisbursementsP42,70049,700All reconciling items at March 31, 2021 deared the bank in April. Outstanding checks at April30, 2021 totaled P5,000. There were no deposits in transit at April 30, 2021.2. What is the cash balance per books at April 30, 2021?

“Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Problem 3 Serato Company keeps all its cash In a checking account. An examination of the enttys ecounung records and bank statement for the month ended December 31, 2020 revealed a bank statement balance of P8.469.000 and a book balance of P8,524,000. A deposit of 50,000 placed in the bank's night depository on December 29 does not appear on the bank Statement. Checks outstanding on December 31 amount to P270, 000. The bank statement shows that on December 25, the bank collected a note for Serato Company and creaited uhe proceeds of P935,000 to the entity's account. The proceeds included P35,000 interest, all or which Serato Company earned during the current period. Serato Company has not yet recorde the said collection. Serato Company discovered that check number 1000759 written in December for P183,000 in payment of an account had been recorded in the entity's records as P138,000. Included with the December 31 bank statement was an NSF check for P250,000 thát Serato Company had received from Ana Company on December 20. Serato Company has not yet recorded the returned check. The bank statement shows a P15,000 service charge for December. 3. The net adjustment to the cash account is:

Problem 3 Serato Company keeps all its cash In a checking account. An examination of the enttys ecounung records and bank statement for the month ended December 31, 2020 revealed a bank statement balance of P8.469.000 and a book balance of P8,524,000. A deposit of 50,000 placed in the bank's night depository on December 29 does not appear on the bank Statement. Checks outstanding on December 31 amount to P270, 000. The bank statement shows that on December 25, the bank collected a note for Serato Company and creaited uhe proceeds of P935,000 to the entity's account. The proceeds included P35,000 interest, all or which Serato Company earned during the current period. Serato Company has not yet recorde the said collection. Serato Company discovered that check number 1000759 written in December for P183,000 in payment of an account had been recorded in the entity's records as P138,000. Included with the December 31 bank statement was an NSF check for P250,000 thát Serato Company had received from Ana Company on December 20. Serato Company has not yet recorded the returned check. The bank statement shows a P15,000 service charge for December. 3. The net adjustment to the cash account is:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

vaibhav subject-Accounting
PROBLEM 5: In reconciling the cash balance on December 31, 2020 with that shown in the bank statement, Nana Company provided the following information: Balance per bank statement 4,000,000 Outstanding check 600,000 Deposit in transit 475,000 Service Charge 10,000 Proceeds of bank loan, December 1, discounted for 6 months 12%, not recorded on Nana Company's books 940,000 Customer's check charged back by bank for absence of counter signature 50,000 Deposit of P100,000 incorrectly recorded by bank as Check of Layla's Company charged by bank against Nana's account 10,000 150,000 Customer's note collected by bank in favor of Nana Company Face 400,000 Interest 40,000 Total 440,000 Collection fee 5,000 435,000 Erroneous debit memo of December 28, to charge Nana's account with settlement of bank loan Deposit of Layla Company credited to Nana account 200,000 300,000 What is the adjusted cash in bank on December 31, 2020?
Oscar Myer receives the March bank statement for Jam Enterprises on April 11, 2018. The March 31 bank statement shows an ending cash balance of $67,566. A comparison of the bank statement with the general ledger Cash account, No. 101, reveals the following. O. Myer notices that the bank erroneously cleared a $500 check against his account in March that he did not issue. The check documentation included with the bank statement shows that this check was actually issued by a company named Jam Systems. On March 25, the bank lists a $50 charge for the safety deposit box expense that Jam Enterprises agreed to rent from the bank beginning March 25. On March 26, the bank lists a $102 charge for printed checks that Jam Enterprises ordered from the bank. On March 31, the bank lists $33 interest earned on Jam Enterprises' checking account for the month of March. O. Myer notices that the check he issued for $128 on March 31, 2018, has not yet cleared the bank. O. Myer verifies that all deposits…
I want Solution please provide it
need answer please
Answer #4 only.
i need the answer quickly
Part ii. Prepare the journal entries resulting from the bank reconciliation
Hello tutor please help me with this Question
PROBLEM NO. 2 Shown below is the bank reconciliation for ABC Company for November 2020: Balance per bank, Nov. 30, 2020 Add: Deposits in transit Total Less: Outstanding checks P150,000 24,000 174,000 P28,000 10.000 Bank credit recorded in error 38,000 P136,000 Cash balance per books, Nov. 30, 2020 The bank statement for December 2020 contains the following data: P110,000 Total deposits Total charges, including an NSF check of P8,000 and a service charge of P400 96,000 All outstanding checks on November 30, 2020, including the bank credit, were cleared in the bank in December 2020. There were outstanding checks of P30,000 and deposits in transit of P38,000 on December 31, 2020. Questions: Based on the above, answer the following: A. How much is the cash balance per bank on December 31, 2020? B. How much is the cash balance per books on December 31, 2020? C. The adjusted cash in bank balance as of December 31, 2020?
5. Bank Reconciliation Johnson Corporation's bank statement for October reports an ending balance of $22,381, whereas Johnson's cash account shows a balance of $22,025 on October 31. The following additional information is available: 6. A $855 deposit made on October 31 was not recorded by the bank until November. 7. At the end of October, outstanding checks total $1,222. 8. The bank statement shows bank service charges of $125 not yet recorded by the company. 9. The company erroneously recorded as $973 a check that it had actually written for $379. It was correctly processed by the bank. 10. A $480 check from a customer, deposited by the company on October 29, was returned with the bank statement for lack of funds. Required: 1. Prepare the October bank reconciliation for Johnson Corporation.
Vinubhai