PROBLEM 2-1
Apathy Company provided the following information:
Date
Check No.
Dec. 2
Dec. 18
104
Dec. 20
101
Dec. 22
106
Dec. 27
Dec. 29
Dec. 29
103
Dec. 29 CM
Dec. 31 Service
Charge DM
Apathy Company
Withdrawal
Deposits
100,000
10,000
5,000
25,000
50,000
10,000
40,000
30,000
2,000
Dec. 1 Deposit
100,000
Dec. 21 Deposit
50,000
Dec. 27 Deposit
10,000
Dec. 31 Deposit
80,000
First Bank
Dec.
101
Dec.
102
Dec.
103
Dec.
104
Dec.
105
Dec.
106
Dec.
107
Balance
100,000
90,000
85,000
60,000
110,000
120,000
80,000
110,000
108,000
4 Check No.
5,000
6 Check No.
15,000
8 Check No.
40,000
8 Check No.
10,000
10 Check No.
30,000
14 Check No.
25,000
28 Check No.
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:
a. Prepare a bank reconciliation using adjusted balance method.
b. Prepare adjusting entries
PROBLEM 2-10
In preparing the bank reconciliation for the month of August, Apex Company provided
the following information:
Balance per bank statement
Deposit in transit
Return of customer check for insufficient
fund
Outstanding checks
Bank service charge for August
1,805,000
325,000
60,000
275,000
10,000
What is the adjusted cash in bank?
a. 1,855,000
b. 1,795,000
c. 1,785,000
d. 1,755,000
PROBLEM 2-11
Core 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 book
Balance per bank statement
Outstanding checks, including certified
check of P100,000
Deposit in transit
December NSF checks, of which P50,000
had been redeposited and cleared on
December 27
Erroneous credit to Core’s account,
representing proceeds of loan granted to
another company
Proceeds of note collected by bank for
Core, net service charge of P20,000
What amount should be reported as cash in bank at year-end?
a. 1,500,000
b. 1,400,000
c. 1,800,000
d. 1,450,000
850,000
2,000,000
500,000
200,000
150,000
300,000
750,000
PROBLEM 2-12
In preparing the bank reconciliation for the month of December, Case company
provided the following data:
Balance per bank statement
Deposit in transit
Amount erroneously credited by bank to
Case’s account
Bank service charge for December
NSF Check
Outstanding checks
3,800,000
520,000
40,000
5,000
50,000
675,000
What is the unadjusted cash in bank balance per book?
a. 3,550,000
b. 3,660,000
c. 3,610,000
d. 3,655,000
PROBLEM 2-13
Able Company received the bank statement for the month of March. However, the
closing balance of the account was unreadable.
Attempt to contact the bank after office hours did not secure the desired information.
February 28 book balance
Note collected by bank
Interest earned on note
NSF check of customer
Bank service charge on NSF check
Other bank service charge
Outstanding checks
Deposit of February 28 placed in night
depository
Checks issued by Axle Company charged
to Able’s account
What is the cash balance per bank statement?
a. 1,435,000
b. 1,530,000
c. 1,340,000
d. 1,550,000
1,460,000
100,000
10,000
130,000
2,000
3,000
200,000
85,000
20,000
PROBLEM 2-14
Laconic Company received the bank statement for the month of April which included
the following information:
Bank service charge for April
Check deposited by Laconic during April
was not collectible and has been marked
“NSF” by the bank and returned
Deposits made but not yet recorded by
bank
Checks written and mailed but not yet
recorded by bank
15,000
40,000
130,000
100,000
The entity found a customer check for P35,000 payable to the entity that had not yet
been deposited and had not been recorded.
The general ledger showed a bank account balance of P920,000.
What amount should be reported as adjusted cash in bank on April 30?
a. 900,000
b. 865,000
c. 930,000
d. 965,000
PROBLEM 2-15
Sapphire Company provided the following information for the month of December:
Balance per bank statement December
31
Bank service charge for December
Interest paid by bank to Sapphire
Company for December
Deposits made but not yet recorded by
the bank
Checks written but not yet recorded by
the bank
2,800,000
12,000
10,000
350,000
650,000
The entity discovered that it had drawn and erroneously recorded a check for P46,000
that should have been recorded for P64,000.
What is the cash balance per ledger on December 31?
a. 2,500,000
b. 2,520,000
c. 2,540,000
d. 2,800,000
PROBLEM 2-16
Adversary Company kept all cash in a checking account. An examination of the
accounting records and bank statement for the month of Lune 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.
Checks outstanding on 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 a customer on June 26.
The bank statement shows a P20,000 service charge for June.
What amount should be reported as cash in bank on June 30?
a. 9,180,000
b. 9,360,000
c. 9,000,000
d. 3,300,000
What is the net adjustment to cash in bank on June 30?
a. Net debit
P950,000
b. Net credit
P450,000
c. Net debit
P500,000
d. Net debit
P860,000
PROBLEM 2-17
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
Deposit of July 31 not recorded by bank
until August 1
Outstanding checks, including certified
check of P50,000
Proceeds of bank loan not recorded in
ledger
Proceeds from customer note, face
P400,000, collected by bank, collection
fee of P15,000
A creditor check has been entered in the
book as P20,000, and was erroneously
deducted by bank at
A customer check was returned by bank
marked DAIF
Correct cash balance
What is the cash balance per ledger?
a. 2,120,000
b. 3,055,000
c. 2,55,000
d. 2,065,000
What is the cash balance per bank statement?
a. 3,700,000
b. 3,070,00
c. 3,050,00
d. 2,370,000
?
?
5,000
450,000
750,000
500,000
435,000
200,000
50,000
3,000,000
PROBLEM 2-18
Jane Company provided the following information at month-end:
Cash in bank per bank statement
Deposit in transit
Outstanding checks, including certified
checks of P200,000
Amount erroneously credited by bank to
Jane’s account
Note collected by bank for Jane
Company, including interest of P100,000
Service charge for the current month
NSF checks of customers returned by bank
Error in recording a check in the book. The
correct amount as paid by the bank is
P100,000 instead of P200,000 as recorded
in the book
Saving deposit in other bank closed by BSP
Currency and coins on hand
Petty cash fund
What is the adjusted cash in bank at month-end?
a. 7,750,000
b. 7,900,000
c. 8,050,000
d. 7,550,000
What is the unadjusted cash in bank per ledger at month-end?
a. 7,070,000
b. 7,220,000
c. 7,270,000
d. 7,750,000
What total amount of cash should be reported as current asset?
a. 8,700,000
b. 9,700,000
c. 8,020,000
d. 8,850,000
8,000,000
1,200,000
1,500,000
150,000
1,100,000
20,000
500,000
100,000
1,000,000
900,000
50,000
PROBLEM 2-19
Pearl Company maintains a checking account at the City Bank. The bank provides a
bank statement along with canceled checks on the last day of each month. The July
bank statement included the following information:
Balance, July 1
Deposits
Checks processed
Service charge
NSF check
Monthly loan payment deducted by bank
from account
550,000
1,800,000
1,400,000
30,000
120,000
100,000
Deposits outstanding totaled P100,000 and all checks written by the depositor were
processed by the bank except for check of P150,000.
A P200,000 July deposit from accredit customer was recorded as P20,000 debit cash and
credit accounts receivable.
A check correctly recorded by the entity as P30,000 disbursement was incorrectly
processed by the bank as P300,000 disbursement.
What is the balance per bank on July 31?
a. 700,000
b. 550,000
c. 800,000
d. 950,000
What amount should be reported as cash in bank on July 31?
a. 650,000
b. 920,000
c. 380,000
d. 970,000
What is the cash in bank balance per ledger on July 31?
a. 1,350,000
b. 1,170,000
c. 990,000
d. 890,000