On Oct. 31, 2021, Dark Co's cash balance per records is P7,450, while the balance per bank statement is P8,510. The following information is determined:
On Oct. 31, 2021, Dark Co's cash balance per records is P7,450, while the balance per bank statement is P8,510. The following information is determined:
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 18P
Related questions
Question
Transcribed Image Text:ACTIVITY 3: BANK RECONCILIATION
On Oct. 31, 2021, Dark Co's cash balance per records is P7,450, while the balance per bank
statement is P8,510. The following information is determined:
a. The bank statement reflects a P780 deposit that is not yet recorded in the books. The
deposit pertains to a collection of note receivable with a principal balance of P700; the
difference represents the interest on the note
b. The bank statement also reflects a P25 withdrawal representing service charges for the
month
c. Dark Co. erroneously recorded a check drawn for P140 as P410. The check, which is
payment for an account payable, cleared the bank at the correct amount.
d. Dark Co. erroneously recorded a P910 collection of an amount receivable as P190. The
bank statement reflects the correct amount of deposit
e. A P1,900 check deposit on Oct. 31 is not yet reflected in the bank statement
f. The following checks drawn by Dark Co. are not yet presented to the bank for payment:
Check #075 for P325, Check #080 for P100, and Check #094 for P700.
Requirement:
1. Prepare the bank reconciliation for the month of October
Expert Solution
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
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
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Financial & Managerial Accounting
Accounting
ISBN:
9781285866307
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Corporate Financial Accounting
Accounting
ISBN:
9781305653535
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning