Homework Help is Here – Start Your Trial Now!
Business
Accounting
Bank reconciliation using: a. Bank to book method; b.Book to bank method; and c.Adjusted balance method

Bank reconciliation using: a. Bank to book method; b.Book to bank method; and c.Adjusted balance method

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 16CE
See similar textbooks
icon
Related questions
Question
100%
Provide solution on the following requirements.
A customer's check for P15,400 was entered as P14,500 by both the depositor and the bank but was later corrected by the bank. C. d. Check no. 142 for P12,425 was entered in the cash disbursements journal at P12,245 and check no. 156 for P3,290 was entered as P32,900. e. Bank service charges of P1,830 for December were not yet recorded on the books. f. A bank memo stated that a customer's note for P25,000 and interest of P1,000 had been collected on December 28; and the bank charged P500. (No entry was made on the books when the note was sent to the bank for collection). g. Receipts on December 31 for P24,000 were deposited on January 2. h. The following checks were outstanding on Dec. 31: No. 123 Р3,000 2,000 7,000 No. 154 P4,000 6,000 7,000 5,000 143 157 144 159 147 3,000 169 * Certified by the bank in December A deposit of P20,000 was recorded by the bank on December 5, but it should have been recorded for Dolor Company rather than Dollar Company. i. j. Petty cash of P10,000 was included in the Cash in Bank balance. k. Proceeds from cash sales of P60,000 for December 18 were stolen. The company expects to recover this amount from the insurance company. The cash receipts were recorded in the books, but no entry was made for the loss. The December 21 deposit included a check for P20,000 that had been returned on December 15 marked NSF. Dollar Company had made no entry upon return of the check. The redeposit of the check on December 21 was recorded in the cash receipts journal of Dollar Company as a collection on account. 1. REQUIRED: Bank reconciliation using: a. Bank to book method; b.Book to bank method; and c.Adjusted balance method 1. 2. Adjusting entries as of December 31, 2018.
Transcribed Image Text:A customer's check for P15,400 was entered as P14,500 by both the depositor and the bank but was later corrected by the bank. C. d. Check no. 142 for P12,425 was entered in the cash disbursements journal at P12,245 and check no. 156 for P3,290 was entered as P32,900. e. Bank service charges of P1,830 for December were not yet recorded on the books. f. A bank memo stated that a customer's note for P25,000 and interest of P1,000 had been collected on December 28; and the bank charged P500. (No entry was made on the books when the note was sent to the bank for collection). g. Receipts on December 31 for P24,000 were deposited on January 2. h. The following checks were outstanding on Dec. 31: No. 123 Р3,000 2,000 7,000 No. 154 P4,000 6,000 7,000 5,000 143 157 144 159 147 3,000 169 * Certified by the bank in December A deposit of P20,000 was recorded by the bank on December 5, but it should have been recorded for Dolor Company rather than Dollar Company. i. j. Petty cash of P10,000 was included in the Cash in Bank balance. k. Proceeds from cash sales of P60,000 for December 18 were stolen. The company expects to recover this amount from the insurance company. The cash receipts were recorded in the books, but no entry was made for the loss. The December 21 deposit included a check for P20,000 that had been returned on December 15 marked NSF. Dollar Company had made no entry upon return of the check. The redeposit of the check on December 21 was recorded in the cash receipts journal of Dollar Company as a collection on account. 1. REQUIRED: Bank reconciliation using: a. Bank to book method; b.Book to bank method; and c.Adjusted balance method 1. 2. Adjusting entries as of December 31, 2018.
PROBLEM NO. 4 - Bank reconciliation The Cash in Bank account of Dollar Company disclosed a balance of P203,000 as of December 31. The bank statement as of December 31 showed a balance of P106,000. Upon comparing the bank statement with cash records, the following facts were developed: a. . The company's account was charged on December 26 for a customer's uncollectible check amounting to P30,000. A two-month, 17% P60,000 customer's note dated October 25, discounted on b. November 25, was dishonored on December 25, and the bank charged the company P62,000, which included a protest fee of P2,000.
Transcribed Image Text:PROBLEM NO. 4 - Bank reconciliation The Cash in Bank account of Dollar Company disclosed a balance of P203,000 as of December 31. The bank statement as of December 31 showed a balance of P106,000. Upon comparing the bank statement with cash records, the following facts were developed: a. . The company's account was charged on December 26 for a customer's uncollectible check amounting to P30,000. A two-month, 17% P60,000 customer's note dated October 25, discounted on b. November 25, was dishonored on December 25, and the bank charged the company P62,000, which included a protest fee of P2,000.
Expert Solution
steps

Step by step

Solved in 3 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Procedural Coding: CPT and HCPCS
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
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Corporate Financial Accounting
Corporate Financial Accounting
Accounting
ISBN:
9781305653535
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
College Accounting (Book Only): A Career Approach
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Financial Accounting: The Impact on Decision Make…
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS