SENSIBLE COMPANY provided the following ledger account of the Cash in Bank maintained with Second Bank SECOND BANK 1 BALANCE 6 DEPOSIT 771 20,000.C 772 DEC 100,000.00 DEC 1 CK# 30,000.00 4 5,000.C 12 DEPOSIT 40,000.00 35,000.0 774 15,000.C 775 30,000.0 776 25,000.0 777 40,000.C 773 24 DEPOSIT 50,000.00 10 31 DEPOSIT 60,000.00 14 18 24 The following bank statement was received from the Second Bank by Sensible Company Sensible Company Check No. Withdrawal Deposits Date Balance 1 130,000.00 768 120,000.00 10,000.00 20,000.00 1 771 100,000.00 4 772 5,000.00 95,000.00 6 773 35,000.00 30,000.00 90,000.00 12 774 15,000.00 40,000.00 115,000.00 12 776 52,000.00 63,000.00 24 28 NSF CHECK 8,000.00 50,000.00 10,000.00 45,000.00 CM 5,000.00 105,000.00 140,000.00 135,000.00 1042 28 SERVICE CHARGE Other Information: 1. Sensible Company reconciled its bank balance on November 30 with 2 checks, No, 768 for Php 10,000.00 and No. 770 for Php 20,000.00 outstanding. 2. Check No. 1042 was drawn by Sensitive Company. The bank charged it in error to the account of Sensible Company.
SENSIBLE COMPANY provided the following ledger account of the Cash in Bank maintained with Second Bank SECOND BANK 1 BALANCE 6 DEPOSIT 771 20,000.C 772 DEC 100,000.00 DEC 1 CK# 30,000.00 4 5,000.C 12 DEPOSIT 40,000.00 35,000.0 774 15,000.C 775 30,000.0 776 25,000.0 777 40,000.C 773 24 DEPOSIT 50,000.00 10 31 DEPOSIT 60,000.00 14 18 24 The following bank statement was received from the Second Bank by Sensible Company Sensible Company Check No. Withdrawal Deposits Date Balance 1 130,000.00 768 120,000.00 10,000.00 20,000.00 1 771 100,000.00 4 772 5,000.00 95,000.00 6 773 35,000.00 30,000.00 90,000.00 12 774 15,000.00 40,000.00 115,000.00 12 776 52,000.00 63,000.00 24 28 NSF CHECK 8,000.00 50,000.00 10,000.00 45,000.00 CM 5,000.00 105,000.00 140,000.00 135,000.00 1042 28 SERVICE CHARGE Other Information: 1. Sensible Company reconciled its bank balance on November 30 with 2 checks, No, 768 for Php 10,000.00 and No. 770 for Php 20,000.00 outstanding. 2. Check No. 1042 was drawn by Sensitive Company. The bank charged it in error to the account of Sensible Company.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![SENSIBLE COMPANY provided the following ledger account
of the Cash in Bank maintained with Second Bank
SECOND BANK
100,000.00 DEC
30,000.00
771 20,000.00
772
DEC
1 BALANCE
1 CK#
6 DEPOSIT
5,000.00
773 35,000.00
774 15,000.00
775 30,000.00
776 25,000.00
777 40,000.00
4
12 DEPOSIT
40,000.00
6
24 DEPOSIT
50,000.00
10
31 DEPOSIT
60,000.00
14
18
24
The following bank statement was received from the Second Bank by Sensible Company
Sensible Company
Date
Check No. Withdrawal
Deposits
Balance
130,000.00
120,000.00
100,000.00
95,000.00
90,000.00
115,000.00
1
768
10,000.00
771
20,000.00
4
772
5,000.00
6
773
35,000.00 30,000.00
12
774
15,000.00
40,000.00
12
776
52,000.00
63,000.00
8,000.00 50,000.00
10,000.00 45,000.00 CM
5,000.00
24
1042
105,000.00
28 NSF CHECK
140,000.00
28 SERVICE CHARGE
135,000.00
Other Information:
1. Sensible Company reconciled its bank balance on November 30 with 2 checks, No, 768
for Php 10,000.00 and No. 770 for Php 20,000.00 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 Php 52,000 in payment of account.
The amount of Php 25,000.00 was entered in the books of original entry.
4. The bank credit on December 28 represents the proceeds of a Php 50,000.00 note, less a
collection fee of Php 5,000.00 collected by the bank and credited to the account.
5. The NSF Check was received from a customer in payment of account.
Required:
a. Prepare a Bank Reconciliation Statement on December 31. (ADJUSTED BALANCE METHOD)
b. Prepare adjusting entries.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4c64da9b-26a5-48aa-98c4-ef7d3844c26a%2Ff0c7385f-3694-47c4-8eb0-1ab1b35b9be7%2Fcb69zb_processed.png&w=3840&q=75)
Transcribed Image Text:SENSIBLE COMPANY provided the following ledger account
of the Cash in Bank maintained with Second Bank
SECOND BANK
100,000.00 DEC
30,000.00
771 20,000.00
772
DEC
1 BALANCE
1 CK#
6 DEPOSIT
5,000.00
773 35,000.00
774 15,000.00
775 30,000.00
776 25,000.00
777 40,000.00
4
12 DEPOSIT
40,000.00
6
24 DEPOSIT
50,000.00
10
31 DEPOSIT
60,000.00
14
18
24
The following bank statement was received from the Second Bank by Sensible Company
Sensible Company
Date
Check No. Withdrawal
Deposits
Balance
130,000.00
120,000.00
100,000.00
95,000.00
90,000.00
115,000.00
1
768
10,000.00
771
20,000.00
4
772
5,000.00
6
773
35,000.00 30,000.00
12
774
15,000.00
40,000.00
12
776
52,000.00
63,000.00
8,000.00 50,000.00
10,000.00 45,000.00 CM
5,000.00
24
1042
105,000.00
28 NSF CHECK
140,000.00
28 SERVICE CHARGE
135,000.00
Other Information:
1. Sensible Company reconciled its bank balance on November 30 with 2 checks, No, 768
for Php 10,000.00 and No. 770 for Php 20,000.00 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 Php 52,000 in payment of account.
The amount of Php 25,000.00 was entered in the books of original entry.
4. The bank credit on December 28 represents the proceeds of a Php 50,000.00 note, less a
collection fee of Php 5,000.00 collected by the bank and credited to the account.
5. The NSF Check was received from a customer in payment of account.
Required:
a. Prepare a Bank Reconciliation Statement on December 31. (ADJUSTED BALANCE METHOD)
b. Prepare adjusting entries.
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