Reference no: EM132624488
Question -
1. Entity A is preparing its November 30, 20x1 bank reconciliation statement. The following information was determined:
Cash balance per accounting books, Nov. 30, 20x1 600,000
Cash balance per bank statement, Nov. 30, 20x1 860,000
Credit memo 380,000
Debit memo 60,000
Deposits in transit 100,000
Outstanding checks 40,000
Requirement: Prepare the bank reconciliation.
2. Entity A is preparing its February 28, 20x1 bank reconciliation statement. The following information was determined:
Cash balance per accounting books, Feb. 28, 20x1 260,000
Cash balance per bank statement, Feb. 28, 20x1 205,000
When investigating the difference, the accountant determined the following:
1. A customer deposited 30,000 to Entity A's bank account as payment for an account receivable. This is not yet recorded in the books of accounts.
2. A 102,500 check deposited by Entity A during the month is not yet credited to Entity A's account.
3. A check drawn in the amount of 22,500 is not yet presented to the bank for payment.
4. The bank returned a check deposit amounting to 5,000 because of insufficiency in the funds of the drawer. The check was received from a customer as payment for accounts receivable.
Requirements:
1. Prepare the bank reconciliation.
2. Prepare the adjusting (reconciling) entries.