lOMoARcPSD|23070188 Assign 1 Lozano - About bank reconciliation Advanced Financial Accounting (University of Iloilo - PHINMA) Studocu is not sponsored or endorsed by any college or university Downloaded by Gwen Deguzman (gwendeguzman12@gmail.com) lOMoARcPSD|23070188 Andrea Monique Lozano BA125 Problem 2-1 Apathy Company Required: a. Prepare a bank reconciliation using adjusted balance method. Apathy Company Bank Reconciliation December 31 Balance per book Add: Credit memo Total Less: Service charge Balance per bank P65,000 30,000 P95,000 2,000 P93,000 Apathy Company Bank Reconciliation December 31 Balance per bank Add: Deposit in transit Total Less: Outstanding checks Check No. 102 Check No. 105 Check No. 107 Balance per book b. Prepare adjusting entries a) Cash in bank Notes receivable b) Service charge Cash in bank P108,000 80,000 P188,000 P15,000 30,000 50,000 95,000 P93,000 P30,000 P30,000 P2,000 P2,000 Downloaded by Gwen Deguzman (gwendeguzman12@gmail.com) lOMoARcPSD|23070188 Andrea Monique Lozano BA125 Problem 2-2 Sensible Company Required: a. Prepare a bank reconciliation statement on December 31. Sensible Company Bank Reconciliation December 31 Balance per book Add: Credit memo Total Less: Service charge NSF Check Under recording of payment Balance per bank P110,000 45,000 P155,000 5,000 10,000 27,000 P113,000 Sensible Company Bank Reconciliation December 31 Balance per bank Add: Deposit in transit Erroneous debit Total Less: Outstanding checks Check No. 770 Check No. 775 Check No. 777 Balance per book P135,000 60,000 8,000 P203,000 P20,000 30,000 40,000 b. Prepare adjusting entries on December 31. a) Cash in bank P45,000 Service charge 5,000 Notes receivable b) Service charge P5,000 Cash in bank c) Accounts receivable P10,000 Cash in bank d) Accounts payable P27,000 Cash in bank 90,000 P113,000 P50,000 P5,000 P10,000 P27,000 Downloaded by Gwen Deguzman (gwendeguzman12@gmail.com) (a) (b) (c) (d) lOMoARcPSD|23070188 Andrea Monique Lozano BA125 Problem 2-3 Xanthous Company Required: a. Prepare bank reconciliation on February 28, showing the book balances before and after adjustment. Xanthous Company Bank Reconciliation February 28 Balance per book Add: Credit memo Total Less: Service charge Balance per bank P2,840,000 270,000 P3,110,000 5,000 P3,105,000 Xanthous Company Bank Reconciliation February 28 Balance per bank Add: Deposit in transit Total Less: Outstanding checks Check No. 116 Check No. 122 Check No. 124 Check No. 125 Balance per book P3,265,000 450,000 P3,715,000 P60,000 180,000 120,000 250,000 610,000 P3,105,000 b. Prepare journal entries to record the adjustments that are indicated by the bank reconciliation. a) Cash in bank P270,000 Service charge 10,000 Notes receivable P250,000 Interest income 30,000 b) Service charge P5,000 Cash in bank P5,000 Downloaded by Gwen Deguzman (gwendeguzman12@gmail.com) lOMoARcPSD|23070188 Andrea Monique Lozano BA125 Problem 2-4 Chivalry Company Required: a. Prepare a corrected bank reconciliation. Chivalry Company Bank Reconciliation March 31 Balance per book Add: Credit memo Error Total Less: Service charge NSF check Preauthorized payment Balance per bank P1,405,000 2,650,000 45,000 P4,100,000 5,000 220,000 245,000 P3,630,000 Chivalry Company Bank Reconciliation March 31 Balance per bank Add: Deposit in transit Total Less: Outstanding checks Erroneous deposit Balance per book b. Prepare adjusting entries on March 31. a) Cash in bank P2,650,000 Notes receivable Interest income b) Cash in bank P45,000 Accounts payable c) Service charge P5,000 Cash in bank d) Accounts receivable P220,000 Cash in bank e) Utilities expense P245,000 Cash in bank P5,630,000 750,000 P6,380,000 1,650,000 1,100,000 P3,630,000 P2,500,000 150,000 P45,000 P5,000 P220,000 P245,000 Downloaded by Gwen Deguzman (gwendeguzman12@gmail.com)