Reference no: EM132844654
Assignment -
Part A -
Question 1 - C Company has made available the following data in preparing its bank reconciliation on December 31, 2019:
Balance per bank statement 3,800,000
Deposit in transit 520,000
Amount erroneously credited by the bank to CS account 40,000
Bank service charge for December 5,000
Outstanding checks 675,000
Required - What is the adjusted cash in bank on December 31, 2019?
a. 2,685,000
b. 3,645,000
c. 3,600,000
d. 3,605,000
Question 2 - During the audit of B Company on December 31, 2019, the following data are gathered:
Balance per bank 4,000,000
Bank charges 10,000
Outstanding checks 950,000
Deposit in transit 1,200,000
Costumer note collected by bank 1,500,000
Interest on costumer note 60,000
Costumer check returned NSF 250,000
Depositor's note charged to account 1,000,000
Required - What is the adjusted cash in bank on December 31, 2019?
a. 4,300,000
b. 5,300,000
c. 4,250,000
d. 4,000,000
Question 3 - While checking the cash accounts of A Company on December 31, 2020, the following information is available:
Balance per book 6,500,000
Balance in checking account (outstanding checks per book of P1,660,000) 7,000,000
Deposit in bank closed by BSP 1,500,000
Deposit in transit 1,200,000
Currency and coins on hand 400,000
Petty cash fund 50,000
Bank charges not yet taken up in the book 10,000
Bond sinking fund cash 1,000,000
Receivables from employees 100,000
Error in recording a check in the book. The correct amount as paid by the bank is P100,000 instead of P150,000 as recorded in the book or a difference of 50,000
Required - What is the total amount of cash to be reported under current assets on December 31, 2020?
a. 6,540,000
b. 6,990,000
c. 7,990,000
d. 8,490,000
Part B -
Problem 1 - XYZ Entity is preparing its February 28, 2019 bank reconciliation statement. The following information was determined:
Cash balance per accounting books, Feb. 28, 2019 260,000
Cash balance per bank statement, Feb. 28, 2019 205,000
When investigating the difference, the accountant determined the following:
a. A customer deposited P30,000 to XYZ's bank account as payment for an account receivable. This is not yet recorded in the books of accounts.
b. A 102,500 check deposited by XYZ Entity during the month is not yet credited to Entity XYZ's account.
c. A check drawn in the amount of 22,500 is not yet presented to the bank for payment.
d. 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.
Required -
a. Prepare the bank reconciliation.
b. Prepare the adjusting (reconciling) entries.
Problem 2 - Reconciliation of Jazz Company's bank account at May 31 of the current year is:
Balance per bank statement 2,600,000
Deposit outstanding 300,000
Checks outstanding (100,000)
Correct cash balance 2,800,000
Balance per book 2,810,000
Bank service charge (10,000)
Correct cash balance 2,800,000
June data as follows:
|
|
Bank
|
Book
|
|
Checks recorded
|
2,200,000
|
2,500,000
|
|
Deposits recorded
|
1,600,000
|
1,800,000
|
|
Service charges recorded
|
50,000
|
|
|
Collection by bank, P500,000 note plus interest
|
550,000
|
|
|
NSF check returned with June 30 statements (will be redeposited)
|
100,000
|
|
|
Balances
|
2,400,000
|
2,100,000
|
Required - Compute for the cash in the bank that should be reported in the statement of ?nancial position on June 30.