Bank Reconciliation Problems

Intermediate Accounting 1 Bank Reconciliation Apathy corporation provided the following information: Apathy Company Month of December Date: Check Withdrawal Deposit 2 100,000 18 104 10,000 20 101 5,000 22 106 25,000 27 50,000 29 10,000 29 108 40,000 29 CM 30,000 31 DM/ SC 2,000

Prepare adjusting entries on December 31

Balance 100,000 90,000 85,000 60,000 110,000 120,000 80,000 110,000 108,000

First Bank Date Check Amount 4 101 5,000 6 102 15,000 8 103 40,000 8 104 10,000 10 105 30,000 14 106 25,000 28 107 50,000 The credit made by the bank on December 29 represents the proceeds of a note received from a customer which was given to the bank for collection by the entity on December 26 Required Prepare a bank reconciliation using the adjusted method Prepare the adjusting entries Date: 1 21 27 31

Deposit 100,000 50,000 10,000 80,000

The following ledger account is a copy of the bank account in the ledger of Sensible Company: SECOND BANK Date: Deposit Date Check Amount 1 100,000 1 771 20,000 6 30,000 4 772 5,000 12 40,000 6 773 35,000 24 50,000 10 774 15,000 31 60,000 14 775 30,000 18 776 25,000 24 777 40,000 The following bank statement was received from the Second Bank by the Sensible Company Date: Check No. Amount Deposit 1 1 4 6 12 12 24 28 28

768 771 772 773 774 776 1042 NSF S/C

10,000 20,000 5,000 35,000 15,000 52,000 8,000 10,000 5,000

30,000 40,000 50,000 45,000 CM

Other information: 1. Sensible Company reconciled its bank balance on November 30 with two checks, No, 768 for P10,000 and No. 770 for P20,000 outstanding 2. Check No. 1042 was drawn by Sensitive Company. The bank charge it in error to the account of Sensible Company 3. Check No. 776 was correctly drawn for P52,000 in payment of account. The amount of P25,000 was entered in the books of original entry 4. The bank credit on December 28 represents the proceeds of a P50,000 note, less a collection fee of P5,000 collected by bank and credited to the account 5. The NSF check was received from a customer in payment of account Required: Prepare a bank reconciliation on December 31

Xantous Company provided the following bank reconciliation on January 31 of the current year: Bank balance 300,000 Add deposit in transit 600,000 Total 900,000 Less outstanding check 114 240,000 115 160,000 116 60,000 460,000 Adjusted bank balance 440,000 All receipts of cash are deposited in the bank. The bank statement for the month of February is presented below: THIRD BANK Checks Deposit Date Balance Jan 31 300,000 240,000 600,000 Feb 1 660,000 2,000,000 3 2,660,000 200,000 5 2,460,000 900,000 400,000 7 1,960,000 160,000 9 1,800,000 1,000,000 10 2,800,000 500,000 13 2,300,000 1,200,000 16 3,500,000 1,300,000 21 4,800,000 550,000 23 4,250,000 5,000 SC 24 4,245,000 1,000,000 550,000 27 3,795,000 800,000 270,000 CM 28 3,265,000 The following data were taken from the cash journals of Xantous Company: Cash Receipts Journal Cash disbursement Journal Date Debit cash Check No. Credit cash Feb 2 2,000,000 117 200,000 6 400,000 118 900,000 9 800,000 119 800,000 10 200,000 120 500,00 15 1,200,000 121 550,000 20 1,300,000 122 180,000 24 550,000 123 1,000,000 28 450,000 124 120,000 125 250,000 6,900,000 4,500,000 The following information was taken from the credit memo of February 28: Face of the note 250,000 Interest on the note 30,000 Maturity value of the note 280,000 Collection charge 10,000 Credit to your account 270,000 Prepare bank reconciliation on February 28, showing the book balance before and after adjustments MCValC808015: endemic company provided the following data for the purpose of reconciling the cash balance per book with the cash balance per bank statement on December 31. Balance per bank statement 2,000,000 Balance per book 850,000 Outstanding check, including certified check of P100,000 500,000 Deposit in transit 200,000 December NSF check, of which P50,000 had been redeposited and cleared by December 27 150,000 Erroneous credit to Endemic account representing proceeds of loan granted to another entity 300,000 Proceeds of note collected by bank for endemic net of service charge of P20,000 750,000 What is the cash balance to be reported on December 31?

Adversary Company kept all cash in a checking account. an examination of the accounting records and bank statement for the month of June revealed the following information:  The cash balance per book on June 30 is P8,500,000  A deposit of P1,000,000 that was placed in the bank’s night depository on June 30 does not appear on the bank statement  The bank statement shows on June 30, the bank collected note for Adversary company and credited the proceeds of P950,000 to the entity’s account  Check outstanding in June 30 amount to P300,000  Adversary Company discovered that a check written in June for P200,000 in payment of an account payable had been recorded in the entity’s records as P20,000  Included with the June bank statement was NSF check for P250,000 that Adversary Company had received from customer on June 26  The bank statement shows a P20,000 service charge for June What is the cash in bank to be reported in the statement of financial position on June 30? Timex Company provided the following data relating to the cash transactions and bank account for the month of July: Cash balance per ledger Cash balance per bank statement Debit memo for July service charge 5,000 Deposit of July 31 not recorded by bank until August 1 450,000 Outstanding check, including certified check of P50,000 750,000 Proceeds from bank loan not recorded in the ledger 500,000 Proceeds from customer note, face P400,000 collected by bank, collection fee of P15,000 435,000 A creditor check had been entered in the book as P20,000 and was erroneously deducted by bank 200,000 at A customer check was returned by bank DAIF 50,000 Correct cash balance 3,000,000 What is the cash balance per ledger? What is the cash balance per bank statement? Magnate company kept all cash in a checking account. An examination of the accounting records and bank statement for the month ended December 31 revealed a bank statement balance of P18,800,000 and a book balance of P19,000,000 A deposit of P1,450,000 placed in the bank’s night depository on December 31 did not appear on the bank statement. Check outstanding on December 31 amounted to P770,000 of which P70,000 had been certified. The bank statement showed that on December 26 the bank collected a note for Magnate Company and credited the proceeds of P1,900,000 to the entity’s account which included P200,000 interest. The entity discovered that check written in December for P1,930,000 in payment of an account had been recorded as P1,390,000 Included with the December 31 bank statement was an NSF check for P760,000 that the entity had received from a customer on December 20. The entity had not yet recorded the returned check. The bank statement showed P50,000 service charge for December. What s the adjusted cash on bank? What is the journal entry to adjust the cash in bank? Pathetic Company revealed the following facts on August 31: Balance of cash in bank account 1,300,000 Balance of bank statement 1,200,000 Outstanding checks August 31 555 10,000 761 55,000 762 40,000 763 25,000 764 65,000 765 70,000

Receipts of August 31 deposited September 1 275,000 The bank statement showed the following charges: Service charge for august, P5,000; NSF checks received from customer, P85,000 

The cahsier/ bookkeeper had misappropriated P30,000 and an additional P10,000 by charging sales discounts and crediting accounts receivable  The stub for check no. 765 and the invoice relating thereto that is was for P50,000. The check was recorded incorrectly in the cash disbursements journal as P70,000. The check was drawn in payment of account payable  Payment has been stopped on check no. 555 which was drawn in payment of account payable. The payee cannot be located. Prepare a bank reconciliation on August 31 using the adjusted balance method Prepare adjusting entries to correct the cash in bank account on August 31. Jane Company provided following information at month-end Cash in bank per bank statement 8,000,000