PROBLEMS
Problem 3-1 (ACP)
Sassy Company provided the following data for the month of ,
July:
Cash in bank
Balance June 30
Book debits for July including June CM
for note collected, P300000
Book credits for July including June NSF
of P100,000 and service charge of P4,000
1,000,000
4,000,000
3,600,000
Bank statement for July
Balance June 30
,
Bank debits for July including service
charge of PLOOO and June outstanding
checks of P854,000
Bank credits for July including CM for
bank loan of P500,000 and June deposit in
transit of P400,000
1,650,000
2,500,000
3,500,000
Required:
Prepare bank reconciliation on June 30 and July 31, and
adjusting entries on July 31.
Problem 3-2 (ACP)
Beehive Company provided the following information:
Balance per book October 31
Receipts per book for November (collection from
customer, P100,000 recorded as P10,000)
Disbursements per book io'r November
(check for P300,000 in payment ofaccount
recorded as P30,000)
Balance per bank statement November 30
Deposit in transit October 31
Outstanding checks November 30
Bank receipts for November including an
erroneous credit of 13.100000 which should have
been credited to Beelm'e Company
Bank disbursements for November incl uding
check of Beelme Company. P200000
600,000
2,200,09910
1,800,000
930,000
300,000
400,000
2,500,000
1,970,000
Required:
Prepare bank reconciliation on October 31 and November
30, and adjusting entries on November 30.
86
Problem 3—3 (1AA)
Fabulous Company provided the followm'g data concerning
cash on July 31:
Checks drawn
No.
No.
No.
No.
No.
No.
No.
No.
101
102
103
104
105
106
107
108
600,000
700,000
300,000
400,000
450,000
600,000
650,000
500,000
Bank statement
Balance, July 31
Charges:
Checks paid
Service charge
Credits:
Deposits
Note collected
2,700,000
4,000,000
20,000
3,500,000
1,500,000
Balance of cash per book on July 1, P1,270,000. Cash receipts
per cash book for the month of July P3,400,000.
Checks paid by bank include all checks issued durm'g the
month of July except No. 107 and No. 108.
On July 3 1 cash received but not deposited m' bank, P400,000.
Required:
a.
Prepare bank reconcfl1"at1'on on July 1 and July 31.
b.
Prepare adjusting entries on July 31.
87
Problem 3—4 (ACP)
Flamboyant Company prepared the following bank
reconc1l'iation on October 31:
Cash account balance
Less: Bank service charge
Deposit outstanding
Check erroneously charged by
bank against entity's account
5,000
45,000
10,000
990,000
60,000
\
Balance
Add: Checks outstanding
Unrecorded collections
930,000
125,000
45,000
170,000
Bank statement balance
1,100,000
October 31 balance per book
Book credits
Book debits
990,000
1,200,000
710,000
October 31 balance per bank statement
Bank credits
Bank debits
1,100,000
500,000
1,000,000
Debit memo for service charge in November
Debit memo for a customer’s NSF check m' November
10,000
50,000
During the month of November, the bank corrected the
P10,000 error committed in prior month.
The entity recorded as cash receipt a customer note
receivable of P100,000 placed with the bank for collection
on November 30. The note was not collected until the
subsequent month.
Required:
a. Prepare bank reconcfliation statement on November 30
showing adjusted balances.
b. Prepare one adjusting entry only on November 30.
88
Problem 3—5 (ACP)
Efficient Company showed the following information:
Cash m' bank balance, March 3 1
Book credits for Aer
Book debits for April'
200,000
720,000
800,000
Bank statement balance, March 3 1
Bank debits
Bank credits
330,000
530,000
700,000
Note collected by bank:
March
April'
60,000
100,000'
Service charge:
March
April'
8,000
2,000
NSF check:
March
April'
20,000
30,000
Deposit m' transit:
March 3 1
April 30
80,000
220.000
Outstandm'g checks:
March 3 1
April' 30
178,000
372,000
Required:
Prepare a proof of cash for the month~of Aprll' following the
"bookto bank" method.
89
Problem 3-6 (1AA)
Bigotry Company provided the following information:
Balance per book, August 31
Receipts per book for August
Disbursements per book for August
2,000,000
4,400,000
3,600,000
Balance per bank, August 31
Bank receipts for August
Bank disbLu‘sements for August
1,860,000
5,000,000
3,940,000
August collection of P200000 recorded by entity as
20,000
August check in payment of account
payable for P600,000 recorded by entity as
60,000
Deposit of Bigot Company
erroneously credited by bank to Bigotry Company
200,000
August check of Bigot Company
erroneously charged by bank to Bigotry Company
400,000
NSF check:
July
August
100,000
50,000
Note collected by bank for Bigotry Company:
July
August
200,000
300,000
Deposit m' transit:
July 31
August 31
600,000
480,000
Outstanding checks:
July 3 1
August 31
100,000
650,000
Required:
Prepare a proof of cash for the month of August following
the "book to bank" method.
‘
90
Problem 3-7 (1AA)
Bedlam Company provided the following data for the month
of December:
November 30 December 31
Cash in bank account balance
Bank statement balance
Bank debits
Bank credits
Book debits
Book credits
Outstanding checks
Deposit in transit
Check erroneously charged by
bank against entity’s account
and corrected m' subsequent month
Bank service charge
Note recorded as cash receipt by
entity when placed with bank
for collection and note is actually
collected by bank in subsequent
month and credited by bank to
entity’s account m' same month
2,032,000
1,890,000
3,160,000
2,900,000
1,080,000
?
?
1,440,000
180,000
80,000
592,000
498,000
40,000
2,000
00',000
4,000
200,000
300,000
Required:
a.
Prepare a four-column reconcfldation showing adjusted
balances.
b.
Prepare one adjusting entry only on December 31.
91‘
Problem 3-8 (IAA)
J(6 rgon Company provided the followm'g data concermn'g the
cash records for the months of September and October.
September 30
October 31
Book balance
Total cash receipts per book
Total cash disbursements per book
1,900,000
?
Bank balance
Total charges in bank statement
Total credits in' bank statement
2,100,000
NSF check
Collections of accounts receivable
not recorded by entity and
- corrected in' subsequent month
Overstatement of check m'
payment of salaries corrected
m' subsequent month
Deposit in transit
Outstanding checks
1’400)m0
2,400,000
?
2,500,000
I’ZOOIW
60,000
40,000
30,000
50,000
90,000
130,000
270,000
120,000
260,000
30,000
Required:
a.
Prepare a four-column reconcfliation showing adjusted
'
balances.
b.
P:epare adjusting entries on October 31.
92
Problem 3-9 (PHILCPA Adapted)
Humanizer Company provided the followm'g information:
Balance per bank statement — May 31
Deposits outstanding
Checks outstandm'g
2,600,000
300,000
(_L_)'
100 000
2,800,000
Correct bank balance -— May 3 1
2,810,000
L___)
10,000
Balance per book — May 3 1
Bank service charge
2,800,000
Correct book balance — May 3 1
June data are as follows:
Bank
Book
Checks recorded
2,200,000
1,600,000
Deposits recorded
50,000
Service charges recorded
Note collected by bank, P500,000 plus m'terest 550,000
NSF check returned with June 30 statement 100,000
Balances
2,400,000
. 2,500,000
1,800,000
2, 100,000
1. What is the amount of outstanding checks on June 30?
a 300,000
b. 400,000
c. 200,000
(1. 100,000
2.
What is the amount of deposits m' transit on June 30?
a.
b.
0.
d.
300,000
100,000
200,000
500,000
3. What is the adjusted cash in bank on June 30?
a.
b.
0.
(1.
2,500,000
2,400,000
2,100,000
2,800,000
93
l,ted)
flowing bank re
ire outstan
1 December 3
ts per book“
3,400,000
( 900,000)
Balance per book, June 30
V,a
uhV
_
,‘
‘~,\_may";
400,040
Total
_
outstanding checks
2,500,000
Deposits, m'cludm'g P200,000
note collecte (1 for Lovable
Disbursements, including P140,000
NSF check and
P10,000 service charge
ayflhmarvfweu
following:
, -
November 3
ling the ban
onLkoune
able 30:
Com p any p repared t
he followmg
‘
bank reconmation
- 11‘
Balance per ba.nk statement,
June 30
Deposit in transit
3,000,000
9,000,000
7,000,000
All reconcilin g items on June
30 cleared through the bank
July.
in
a. 5,000,000
b. 5,200,000
0. 5,550,000
d. 5,400,000
2. What is the cash balance per book on
July 31?
a. 5,400,000
b. 5,350,000
c. 5,550, 000
d. 4,500,000
3. What is the amount of cash receipts per book in July?
a. 9,400,000
b. 9,600,000
c. 8, 600,000
d. 9,800,000
' 4. What 1s" the amount ofcash disbursements per bookm' July?
a.
b.
0.
d.
6,550,000
6, 700,000
7,300,000
6,850,000
95
Ly.
ny
heck
Problem 3-1 1 (AICPA Adapted)
Problem 3-12 (AICPA Adapted)
Loquacious Company prepared the
reconcfliation on June 30.
following bank
Balance per bank
Deposit in transit
Outstanding checks
9,800,000
400,000
(1,400,000)
Balance per book
8,800,000
There were total deposits of P6,500,000 and charges for
'disbursements of P9,000,000 for July per bank statement.
All reconc1h"ation items on June 30 cleared the bank on July
31. Deposit in transit totaled P600,000 and checks
outstanding amounted to P1,000,000 on July 31.
1.
What is the adjusted cash in bank on July 31'?
a. 7,300,000
b. 7,900,000
0. 6,900,000
d. 6,300,000
2. What is the cash balance per book on July 31?
a. 6,900,000
b. 7,300,000
0. 6,300,000
d. 8,800,000
3.
What is the amount of cash receipts per book in July?
a.
b.
c.
Id.
6,700,000
6,500,000
6,300,000
7,100,000
999‘?“
4. What is the amount of cash disbursements per book m’ July?
8,600,000
7,600,000
9,400,000
8, 400,000
Problem 3-13 (AICPA Adapted)
Opaque Company prepared the following bank reconc1h"ation V‘
on March 31:
Balance per bank statement, March 31
Deposit in trans1t
Total
Outstanding checks
Balance per book, March 31
4,650,000
1,000,000
5,650,000
(_1,250,000)
4,400,000
Data per bank statement for the month of April follow:
6,000,000
5,000,000
Deposits
Disbursements
All reconcfll'ation items on March 31 cleared through the bank
1n" April'.
Outstandm'g checks on April' 30 totaled P750,000 and deposits
in transit amounted to P1,500,000.
1.
What is the adjusted cash in bank on Aprfl 30?
a.
b.
0.
d.
5,650,000
7, 150,000
4,650,000
6,400,000
2. What is the cash balance per ledger on April' 30?
a.
b.
c.
d.
3
6,400,000
5,650,000
4,900,000
4,650,000
What is the amount of cash receipts per book in April'?
a.
b.
c.
‘ (1.
5,000,000
6,500,000
7,500,000
5,500,000
4. What is the amount of cash disbursements per
book in April?
a.
b.
0.
(1.
5,000,000
5,500,000
4,500,000
5,750,000
97