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SENSIBLE COMPANY provided the following ledger account of the Cash in Bank maintained with Second Bank SECOND BANK 100,000.00 DEC 771 20,000.00 772 5,000.00 773 35,000.00 774 15,000.00 775 30,000.00 776 25,000.00 777 40,000.00 DEC 1 BALANCE 1 CK 6 DEPOSIT 12 DEPOSIT 24 DEPOSIT 30,000.00 4 40,000.00 6. 10 14 50,000.00 31 DEPOSIT 60,000.00 18 24

SENSIBLE COMPANY provided the following ledger account of the Cash in Bank maintained with Second Bank SECOND BANK 100,000.00 DEC 771 20,000.00 772 5,000.00 773 35,000.00 774 15,000.00 775 30,000.00 776 25,000.00 777 40,000.00 DEC 1 BALANCE 1 CK 6 DEPOSIT 12 DEPOSIT 24 DEPOSIT 30,000.00 4 40,000.00 6. 10 14 50,000.00 31 DEPOSIT 60,000.00 18 24

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 47E
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Can I get a step by step explanation on the book to bank method in Sensible Company problem. Thank you.
12:14 O 0 i bartleby.com/questions-and 73 Q SEARCH & ASK CHAT VX MATH SOLVER SENSIBLE COMPANY provided the following ledger account of the Cash in Bank maintained with Second Bank SECOND BANK 1 BALANCE 6 DEPOSIT 100,000.00 DEC 30,000.00 40,000.00 50,000.00 771 20,000.00 772 5,000.00 773 35,000.00 774 15,000.00 775 30,000.00 776 25,000.00 777 40,000.00 DEC 1 CK 4 6. 12 DEPOSIT 24 DEPOSIT 10 14 18 24 31 DEPOSIT 60,000.00 The following bank statement was received from the Second Bank by Sensible Company Sensible Company Check No. Withdrawal Deposits Date Balance 130.000.00 768 10,000.00 120,000.00 1 4 6 12 12 24 28 NSF CHECK 28 SERVICE CHARGE 771 20,000.00 100,000.00 772 5,000.00 95,000.00 35,000.00 30,000.00 15,000.00 40,.000.00 90,000.00 115,000.00 63,000.00 773 774 776 52,000.00 1042 8,000.00 50,000.00 10,000.00 45.000 00 CM 5,000.00 105,000.00 140,000.00 135,000.00 lother Information: 1. Sensible Company reconciled its bank balance on November 30 with 2 checks, No, 768 for Php 10,000.00 and No. 770 for Php 20,000.00 outstanding. 2. Check No. 1042 was drawn by Sensitive Company. The bank charged it in error to the account of Sensible Company. 3. Check No. 776 was correctly drawn for Php 52,000 in payment of account. The amount of Php 25,000.00 was entered in the books of original entry. 4. The bank credit on December 28 represents the proceeds of a Php 50,000.00 note, less a collection fee of Php 5,000.00 collected by the bank and credited to the account. 5. The NSF Check was received from a customer in payment of account. Required: a. Prepare a Bank Reconciliation Statement on December 31. (ADJUSTED BALANCE METHOD) b. Prepare adjusting entries. Transcribed Image Text: SENSIBLE COMPANY provided the following ledger account of the Cash in Bank maintained w Second Bank SECOND BANK 100,000.00 DEC 30,000.00 77 20,000.00 772 DEC 1 BALANCE 1 CK# 6 DEPOSIT 5,000.00 7 II
Transcribed Image Text:12:14 O 0 i bartleby.com/questions-and 73 Q SEARCH & ASK CHAT VX MATH SOLVER SENSIBLE COMPANY provided the following ledger account of the Cash in Bank maintained with Second Bank SECOND BANK 1 BALANCE 6 DEPOSIT 100,000.00 DEC 30,000.00 40,000.00 50,000.00 771 20,000.00 772 5,000.00 773 35,000.00 774 15,000.00 775 30,000.00 776 25,000.00 777 40,000.00 DEC 1 CK 4 6. 12 DEPOSIT 24 DEPOSIT 10 14 18 24 31 DEPOSIT 60,000.00 The following bank statement was received from the Second Bank by Sensible Company Sensible Company Check No. Withdrawal Deposits Date Balance 130.000.00 768 10,000.00 120,000.00 1 4 6 12 12 24 28 NSF CHECK 28 SERVICE CHARGE 771 20,000.00 100,000.00 772 5,000.00 95,000.00 35,000.00 30,000.00 15,000.00 40,.000.00 90,000.00 115,000.00 63,000.00 773 774 776 52,000.00 1042 8,000.00 50,000.00 10,000.00 45.000 00 CM 5,000.00 105,000.00 140,000.00 135,000.00 lother Information: 1. Sensible Company reconciled its bank balance on November 30 with 2 checks, No, 768 for Php 10,000.00 and No. 770 for Php 20,000.00 outstanding. 2. Check No. 1042 was drawn by Sensitive Company. The bank charged it in error to the account of Sensible Company. 3. Check No. 776 was correctly drawn for Php 52,000 in payment of account. The amount of Php 25,000.00 was entered in the books of original entry. 4. The bank credit on December 28 represents the proceeds of a Php 50,000.00 note, less a collection fee of Php 5,000.00 collected by the bank and credited to the account. 5. The NSF Check was received from a customer in payment of account. Required: a. Prepare a Bank Reconciliation Statement on December 31. (ADJUSTED BALANCE METHOD) b. Prepare adjusting entries. Transcribed Image Text: SENSIBLE COMPANY provided the following ledger account of the Cash in Bank maintained w Second Bank SECOND BANK 100,000.00 DEC 30,000.00 77 20,000.00 772 DEC 1 BALANCE 1 CK# 6 DEPOSIT 5,000.00 7 II
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