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Bank Reconciliation Assignment

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Assign 1 Lozano - About bank reconciliation
Advanced Financial Accounting (University of Iloilo - PHINMA)
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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
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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
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(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
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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
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