Reference no: EM132855230

Question 1 - A. in payment of a sale made in December 2019, not included in December 31 checkbook balance.

You are conducting an audit to BLACKPINK Company upon checking the checkbook balance on December 31, 2019 at P10,000,000 and held the following items on same date:

Check payable to BLACKPINK, dated January 5, 2020 P 2,000,000

Check payable to BLACKPINK, deposited December 15 and included in 500,000

December 31 checkbook balance, but returned by bank on

December 28 stamped "NSF" the check was redeposited on

January 3, 2020 and cleared on January 6, 2020.

Check drawn on BLACKPINK's account, payable to a vendor, dated and 300,000 recorded in BLACKPINK's books on December 31, 2019 but not mailed until January 3, 2020.

Time deposit, purchased December 1, 2019 and due on 1,000,000 February 28, 2020

1. What amount should be reported as cash on December 31, 2019?

2. What are the adjusting journal entries to correct BLACKPINK's accounts at December 31?

Question 2 - BTS Company provided the following data pertaining to the cash transactions and bank account for the year ended December 2019:

Cash balance per book P 939,000

Cash balance per bank statement 2,086,000

Bank service charge 10,000

Debit memo for the cost of printed checks delivered by the bank; 6,000

The charge has not been entered in the books

Deposit of December 27 not recorded by bank until January 3, 2020 100,000

Outstanding checks 235,000

Proceeds of a bank loan on December 27, not recorded in the 238,000

Books, net of interest of P12,000

Proceeds from a customer promissory note, principle amount, P800,000 810,000

Collected by the bank not taken up in the books

Check no. 102026 issued to a supplier entered in the books as P210,000 but deducted in the bank statement at an erroneous amount of 120,000

Stolen check lacking an authorized signature deducted from BTS account by the bank in error 50,000

Customer check returned by the bank marked NSF, indicating that the customer bank account balance was not adequate to cover the check; no entry has been made in the books to record the said check 60,000

1. What is the December 2019 Bank Reconciliation?

2. What are the adjusting journal entries?