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Sagittarius Store deposits all receipts intact on the day received and makes all payments by check. On April 30, after all posting was completed, its Cash account showed P6,752 debit balance. However, its April 30 bank statement showed only P6,905 on deposit in bank on that day. The following information are available. a. Outstanding checks, P1,900. Included with the April cancelled checks returned by the bank was a debit memorandum for bank services for P118. b. c. Checks No. 4345, returned with the cancelled checks, was correctly drawn for P580 in payment for the telephone bill and was paid by the bank on April 15 but it had been recorded by a debit to Telephone Expense and credit to Cash for P850. d. The April 30 cash receipts, P1,899 were placed in the bank's night depository after banking hours on the date and were unrecorded by the bank at the time the April bank statement was prepared. Required: Prepare a bank reconciliation statement for Sagittarius Store at April 30 and give the journal entries needed as a result of having prepared the bank reconciliation.

Sagittarius Store deposits all receipts intact on the day received and makes all payments by check. On April 30, after all posting was completed, its Cash account showed P6,752 debit balance. However, its April 30 bank statement showed only P6,905 on deposit in bank on that day. The following information are available. a. Outstanding checks, P1,900. Included with the April cancelled checks returned by the bank was a debit memorandum for bank services for P118. b. c. Checks No. 4345, returned with the cancelled checks, was correctly drawn for P580 in payment for the telephone bill and was paid by the bank on April 15 but it had been recorded by a debit to Telephone Expense and credit to Cash for P850. d. The April 30 cash receipts, P1,899 were placed in the bank's night depository after banking hours on the date and were unrecorded by the bank at the time the April bank statement was prepared. Required: Prepare a bank reconciliation statement for Sagittarius Store at April 30 and give the journal entries needed as a result of having prepared the bank reconciliation.

College Accounting (Book Only): A Career Approach
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 5PB
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Sagittarius Store deposits all receipts intact on the day received and makes all payments by check. On April 30, after all posting was completed, its Cash account showed P6,752 debit balance. However, its April 30 bank statement showed only P6,905 on deposit in bank on that day. The following information are available. a. Outstanding checks, P1,900. b. Included with the April cancelled checks returned by the bank was a debit memorandum for bank services for P118. c. Checks No. 4345, returned with the cancelled checks, was correctly drawn for P580 in payment for the telephone bill and was paid by the bank on April 15 but it had been recorded by a debit to Telephone Expense and credit to Cash for P850. d. The April 30 cash receipts, P1,899 were placed in the bank's night depository after banking hours on the date and were unrecorded by the bank at the time the April bank statement was prepared. Required: Prepare a bank reconciliation statement for Sagittarius Store at April 30 and give the journal entries needed as a result of having prepared the bank reconciliation.
Transcribed Image Text:Sagittarius Store deposits all receipts intact on the day received and makes all payments by check. On April 30, after all posting was completed, its Cash account showed P6,752 debit balance. However, its April 30 bank statement showed only P6,905 on deposit in bank on that day. The following information are available. a. Outstanding checks, P1,900. b. Included with the April cancelled checks returned by the bank was a debit memorandum for bank services for P118. c. Checks No. 4345, returned with the cancelled checks, was correctly drawn for P580 in payment for the telephone bill and was paid by the bank on April 15 but it had been recorded by a debit to Telephone Expense and credit to Cash for P850. d. The April 30 cash receipts, P1,899 were placed in the bank's night depository after banking hours on the date and were unrecorded by the bank at the time the April bank statement was prepared. Required: Prepare a bank reconciliation statement for Sagittarius Store at April 30 and give the journal entries needed as a result of having prepared the bank reconciliation.
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