Preparation and Analysis of Bank Reconciliation Spongebob Squarepants Co. deposits all cash receipts on the day when they are received and it makes all cash payments by check. At the close of business on June 30, 2011, its Cash account shows a P15,141 debit balance. Spongebob Squarepants’ June 30 bank statement shows P14,275 on deposit in the bank. Prepare a bank reconciliation for Spongebob Squarepants Co. using the following information: a. Outstanding checks as of June 30 total P2,500. b. The June 30 bank statement included a P125 debit memorandum for bank services. c. Check No. 919, listed with the cancelled checks, was correctly drawn for P645 in payment of a utility bill on June 15. Spongebob Squarepants Co. mistakenly recorded it with a debit to Utilities Expense and a credit to Cash in the amount of P654. d. The June 30 cash receipts of P3,250 were placed in the bank’s night depository after banking hours and were not recorded on the June 30 bank statement.
Preparation and Analysis of Bank Reconciliation
Spongebob Squarepants Co. deposits all cash receipts on the day when they are received and it makes all cash payments by check. At the close of business on June 30, 2011, its Cash account shows a P15,141 debit balance. Spongebob Squarepants’ June 30 bank statement shows P14,275 on deposit in the bank. Prepare a bank reconciliation for Spongebob Squarepants Co. using the following information:
a. Outstanding checks as of June 30 total P2,500.
b. The June 30 bank statement included a P125 debit memorandum for bank services.
c. Check No. 919, listed with the cancelled checks, was correctly drawn for P645 in
payment of a utility bill on June 15. Spongebob Squarepants Co. mistakenly recorded it
with a debit to Utilities Expense and a credit to Cash in the amount of P654.
d. The June 30 cash receipts of P3,250 were placed in the bank’s night depository after
banking hours and were not recorded on the June 30 bank statement.
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