Reference no: EM132831849

Question - Bigger Company provided the following information:

Balance per book, August 31 2,000,000

Book debits for August 4,400,000

Book credits for August 3,600,000

Balance per bank, August 31 1,860,000

Bank credits for August 5,000,000

Bank debits for August 3,940,000

August collection of P200,000 recorded by entity as 20,000 August check in payment of account payable for P600,000 recorded by entity as 60,000

Deposit of Biggers Company erroneously credited by bank to Bigger Company 200,000 August check of Biggers Company erroneously charged by bank to Bigger Company 400,000 NSF: July 31 August 31 100,000 50,000 Note collected by bank for Bigger Company: July 31 August 31 200,000 300,000 Deposit in transit: July 31 August 31 600,000 480,000 Outstanding Checks: July 31 August 31 100,000 650,000

Required -

1. Prepare four-column bank reconciliation showing adjusted balances.

2. Prepared adjusting entries on August 31.