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Activity 2 Assume the following circumstances for Peter Plumbing Company, a small business located in Taguig. 1. After all, the posting is up to date, at the end of July 31, the book balance shows P32,760, and the bank statement balance shows P77,040. 2. Check 5523 for P9,620 and 6547 for P10,000 are outstanding. 3. Check 5386 for P2,000 is removed from the bank account correctly but is recorded on the accounting records for P1,760. This was in payment of dues. The effects of this transaction resulted in an error of P320 that must be deducted from the company's book balance. 4. The July 31 night deposit of P34,300 was delivered to the bank after hours. As a result, the deposit is not on the bank statement, but it is on the financial records. 5. Upon review of the bank statement, an error is uncovered. A check is removed from the account from Feeter for P240 that should have been removed from the account of another customer of the bank. 6. In the bank statement is a note stating that the bank collected P60,000 in charges (payments) from the credit card company as well as P1,800 in interest. This transaction is on the bank statement but not in the company's financial records. 7. The bank notified Feeter that a P2,200 check was returned unpaid from customer Berson due to insufficient funds in Berson's account. This check return is reflected on the bank statement but not in the records of Footer. 8. Bank service charges for the month are P80. They have not been recorded on Feeter's records.

Activity 2 Assume the following circumstances for Peter Plumbing Company, a small business located in Taguig. 1. After all, the posting is up to date, at the end of July 31, the book balance shows P32,760, and the bank statement balance shows P77,040. 2. Check 5523 for P9,620 and 6547 for P10,000 are outstanding. 3. Check 5386 for P2,000 is removed from the bank account correctly but is recorded on the accounting records for P1,760. This was in payment of dues. The effects of this transaction resulted in an error of P320 that must be deducted from the company's book balance. 4. The July 31 night deposit of P34,300 was delivered to the bank after hours. As a result, the deposit is not on the bank statement, but it is on the financial records. 5. Upon review of the bank statement, an error is uncovered. A check is removed from the account from Feeter for P240 that should have been removed from the account of another customer of the bank. 6. In the bank statement is a note stating that the bank collected P60,000 in charges (payments) from the credit card company as well as P1,800 in interest. This transaction is on the bank statement but not in the company's financial records. 7. The bank notified Feeter that a P2,200 check was returned unpaid from customer Berson due to insufficient funds in Berson's account. This check return is reflected on the bank statement but not in the records of Footer. 8. Bank service charges for the month are P80. They have not been recorded on Feeter's records.

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter4: Internal Control And Cash
Section: Chapter Questions
Problem 27BE
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Create a bank reconciliation statement
Activity 2 Assume the following circumstances for Peter Plumbing Company, a small business located in Taguig. 1. After all, the posting is up to date, at the end of July 31, the book balance shows P32,760, and the bank statement balance shows P77,040. 2. Check 5523 for P9,620 and 6547 for P10,000 are outstanding. 3. Check 5386 for P2,000 is removed from the bank account correctly but is recorded on the accounting records for P1,760. This was in payment of dues. The effects of this transaction resulted in an error of P320 that must be deducted from the company's book balance. 4. The July 31 night deposit of P34,300 was delivered to the bank after hours. As a result, the deposit is not on the bank statement, but it is on the financial records. 5. Upon review of the bank statement, an error is uncovered. A check is removed from the account from Feeter for P240 that should have been removed from the account of another customer of the bank. 6. In the bank statement is a note stating that the bank collected P60,000 in charges (payments) from the credit card company as well as P1,800 in interest. This transaction is on the bank statement but not in the company's financial records. 7. The bank notified Feeter that a P2,200 check was returned unpaid from customer Berson due to insufficient funds in Berson's account. This check return is reflected on the bank statement but not in the records of Footer. 8. Bank service charges for the month are P80. They have not been recorded on Feeter's records.
Transcribed Image Text:Activity 2 Assume the following circumstances for Peter Plumbing Company, a small business located in Taguig. 1. After all, the posting is up to date, at the end of July 31, the book balance shows P32,760, and the bank statement balance shows P77,040. 2. Check 5523 for P9,620 and 6547 for P10,000 are outstanding. 3. Check 5386 for P2,000 is removed from the bank account correctly but is recorded on the accounting records for P1,760. This was in payment of dues. The effects of this transaction resulted in an error of P320 that must be deducted from the company's book balance. 4. The July 31 night deposit of P34,300 was delivered to the bank after hours. As a result, the deposit is not on the bank statement, but it is on the financial records. 5. Upon review of the bank statement, an error is uncovered. A check is removed from the account from Feeter for P240 that should have been removed from the account of another customer of the bank. 6. In the bank statement is a note stating that the bank collected P60,000 in charges (payments) from the credit card company as well as P1,800 in interest. This transaction is on the bank statement but not in the company's financial records. 7. The bank notified Feeter that a P2,200 check was returned unpaid from customer Berson due to insufficient funds in Berson's account. This check return is reflected on the bank statement but not in the records of Footer. 8. Bank service charges for the month are P80. They have not been recorded on Feeter's records.
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