Reference no: EM132745251

Question: Prepare the bank reconciliation on May 31, 2017. Kindly provide the additional necessary computations.

On May 31, 2017, Roy Company had a cash balance per books of Php. 6,781.50. The bank statement from Iloilo Bank on that date showed a balance of Php. 6,404.60. A comparison of the statement with the Cash account revealed the following facts.

1. The statement included a debit memo of Php. 40 for the printing of additional company checks.

2. Cash sales of Php. 836.15 on May 12 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for Php. 886.15. The bank credited Roy Company for the correct amount.

3. Outstanding checks on May 31 totaled Php. 576.25. Deposits in transit were Php. 2,416.15.

4. On May 18, the company issued check No. 1181 for Php. 685 to Lydia Carlos on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Roy Company for Php. 658.

5. A Php. 3,000 note receivable was collected by the bank for Roy Company on May 31 plus Php. 80 interest. The bank charged a collection fee of Php. 20. No interest has been accrued on the note.

6. Included with the cancelled checks was a check issued by Star Company to Ted Cross for Php. 800 that was incorrectly charged to Roy Company by the bank.

7. On May 31, the bank statement showed an NSF charge of Php. 680 for a check issued by Susie Lopez, a customer, to Roy Company on account.