Your review of last month's bank reconciliation and the current bank statement reveals the following: 1. Outstanding checks November 30, 2021 P254,720 : December 31, 2021 335,610 2. Deposits in transit November 30, 2021 164,220 December 31, 2021 209,180 3. Check no. 359 for office repairs was written for P6,950 but recorded in the cash disbursements journal as P9,650. The bank deducted the check as P6,950. The error happened in November and is not yet corrected as of December 31. 4. A check written on the account of YYY Corporation for P5,830 was deducted by the bank from XXX's account. 5. Included with the bank statement was a debit memorandum dated December 31 for P24,750 for interest on a note taken out by XXX on November 30. 6. The service charge for the new checks has not been recorded. 7. The November 30 bank reconciliation showed as reconciling item a service charge of P3,500 and a customer's DAIF check for P34,900.
Your review of last month's bank reconciliation and the current bank statement reveals the following: 1. Outstanding checks November 30, 2021 P254,720 : December 31, 2021 335,610 2. Deposits in transit November 30, 2021 164,220 December 31, 2021 209,180 3. Check no. 359 for office repairs was written for P6,950 but recorded in the cash disbursements journal as P9,650. The bank deducted the check as P6,950. The error happened in November and is not yet corrected as of December 31. 4. A check written on the account of YYY Corporation for P5,830 was deducted by the bank from XXX's account. 5. Included with the bank statement was a debit memorandum dated December 31 for P24,750 for interest on a note taken out by XXX on November 30. 6. The service charge for the new checks has not been recorded. 7. The November 30 bank reconciliation showed as reconciling item a service charge of P3,500 and a customer's DAIF check for P34,900.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![You are auditing the cash in bank account of XXX Corporation as of December 31, 2021. Your examination
revealed the following:
From the bank statement:
Balance, December 1, 2021
P
876,750
Deposits (20)
9,153,760
Checks (64) plus debit memos
(8,524,300)
Service charges for new checks
2,250)
Balance, December 31, 2021
P 1,503,960
From the company's records:
CASH
Particulars
Debit
Particulars
Credit
Nov. 1
P
652,070
Nov. 30 CD
P 6,654,410
Nov. 30 CR
6,824,290
Dec. 1 - bank reconciliation
38,400
Dec. 31 CR
9,198,720
Dec. 31 CD
8,574,610
CD – cash disbursements
CR – cash receipts](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F046f74ee-2772-47bb-bce4-affe58b81920%2F93ed8db7-46a6-45fb-af64-9fd4f7dc61bf%2Ftrtwcpw_processed.jpeg&w=3840&q=75)
Transcribed Image Text:You are auditing the cash in bank account of XXX Corporation as of December 31, 2021. Your examination
revealed the following:
From the bank statement:
Balance, December 1, 2021
P
876,750
Deposits (20)
9,153,760
Checks (64) plus debit memos
(8,524,300)
Service charges for new checks
2,250)
Balance, December 31, 2021
P 1,503,960
From the company's records:
CASH
Particulars
Debit
Particulars
Credit
Nov. 1
P
652,070
Nov. 30 CD
P 6,654,410
Nov. 30 CR
6,824,290
Dec. 1 - bank reconciliation
38,400
Dec. 31 CR
9,198,720
Dec. 31 CD
8,574,610
CD – cash disbursements
CR – cash receipts
![Your review of last month's bank reconciliation and the current bank statement reveals the following:
1. Outstanding checks
November 30, 2021
P254,720
:
December 31, 2021
335,610
2. Deposits in transit
November 30, 2021
164,220
:
December 31, 2021
209,180
3. Check no. 359 for office repairs was written for P6,950 but recorded in the cash disbursements journal as
P9,650. The bank deducted the check as P6,950. The error happened in November and is not yet corrected
as of December 31.
4. A check written on the account of YYY Corporation for P5,830 was deducted by the bank from XXX's
account.
5. Included with the bank statement was a debit memorandum dated December 31 for P24,750 for interest
on a note taken out by XXX on November 30.
6. The service charge for the new checks has not been recorded.
7. The November 30 bank reconciliation showed as reconciling item a service charge of P3,500 and a
customer's DAIF check for P34,900.
REQUIRED:
1. Prepare a proof of cash for the month of December. Show your supporting computations in good form.
2. Prepare the necessary journal entries as of December 31, 2021.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F046f74ee-2772-47bb-bce4-affe58b81920%2F93ed8db7-46a6-45fb-af64-9fd4f7dc61bf%2Ford03le_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Your review of last month's bank reconciliation and the current bank statement reveals the following:
1. Outstanding checks
November 30, 2021
P254,720
:
December 31, 2021
335,610
2. Deposits in transit
November 30, 2021
164,220
:
December 31, 2021
209,180
3. Check no. 359 for office repairs was written for P6,950 but recorded in the cash disbursements journal as
P9,650. The bank deducted the check as P6,950. The error happened in November and is not yet corrected
as of December 31.
4. A check written on the account of YYY Corporation for P5,830 was deducted by the bank from XXX's
account.
5. Included with the bank statement was a debit memorandum dated December 31 for P24,750 for interest
on a note taken out by XXX on November 30.
6. The service charge for the new checks has not been recorded.
7. The November 30 bank reconciliation showed as reconciling item a service charge of P3,500 and a
customer's DAIF check for P34,900.
REQUIRED:
1. Prepare a proof of cash for the month of December. Show your supporting computations in good form.
2. Prepare the necessary journal entries as of December 31, 2021.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
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
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education