BANK RECONCILIATION PROBLEMS 1. On May 31, 20X6, the Herson Amolo Fabricators had a cash balance per books of P57,815. The May bank statement from the Katipunan Development Bank reported a balance of P68.586, A comparison of the statement with the cash account revealed the following facts: The statement included a debilt memo of P300 for the cost of two checkbooks. Cash sales of P8,361.50 on May 12 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for P8,461.50. the bank credited Herson Amolo Fabricators for the correct amount. Outstanding checks at May 31 totaled P12,762.50, and deposits in transit were P9,361.50. On May 18, the company issued check no. 1181 for P6,580 to Citra Steel on account. The check which cleared the bank in May, was incorrectly journalized and posted by Herson Amolo Fabricators for P6,850. A P20,000 note receivable was collected by the bank for Herson Amolo Fabricators on May 31 plus P800 interest. The bank charged a collection fee of P200. The only entry made in May by the company for the note was to accrue interest through May 31. • Included with the cancelled check issued by the Garcia Company to E. Flores for P6,000 that was incorrectly charged to the Herson Amolo Fabricators. • On May 31, the bank statement showed an DAIF charge of P7,100 for a check issued by Gomez Realty, a customer to the Herson Amolo Fabricators on account. Adjusted balance of cash in bank
BANK RECONCILIATION PROBLEMS 1. On May 31, 20X6, the Herson Amolo Fabricators had a cash balance per books of P57,815. The May bank statement from the Katipunan Development Bank reported a balance of P68.586, A comparison of the statement with the cash account revealed the following facts: The statement included a debilt memo of P300 for the cost of two checkbooks. Cash sales of P8,361.50 on May 12 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for P8,461.50. the bank credited Herson Amolo Fabricators for the correct amount. Outstanding checks at May 31 totaled P12,762.50, and deposits in transit were P9,361.50. On May 18, the company issued check no. 1181 for P6,580 to Citra Steel on account. The check which cleared the bank in May, was incorrectly journalized and posted by Herson Amolo Fabricators for P6,850. A P20,000 note receivable was collected by the bank for Herson Amolo Fabricators on May 31 plus P800 interest. The bank charged a collection fee of P200. The only entry made in May by the company for the note was to accrue interest through May 31. • Included with the cancelled check issued by the Garcia Company to E. Flores for P6,000 that was incorrectly charged to the Herson Amolo Fabricators. • On May 31, the bank statement showed an DAIF charge of P7,100 for a check issued by Gomez Realty, a customer to the Herson Amolo Fabricators on account. Adjusted balance of cash in bank
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter6: Bank Accounts, Cash Funds, And Internal Controls
Section: Chapter Questions
Problem 5E
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