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Problem I The entries of the cash in bank account of Auditor Pension House and the bank statement of Land Bank of the Philippines, High Way Branch are given below. Prepare a bank reconciliation in GOOD FORM. (5 points) Cash In Bank Cash Receipts Cash Disbursement Feb 1 Beginning Balance 100,000 Check# 51 5,000 Feb 7 Feb 5 OR# 581 20,000 Check# 52 6,000 Feb 8 Feb 7 OR# 582 15,000 Check# 53 18,000 Feb 11 Feb 25 OR# 583 10,000 Check# 54 15,000 Feb 23 Land Bank of the Philippines National High Way Branch General Santos City Account with Auditor Pension House Address: General Santos City Date Withdrawal Deposit Balance Feb 1 100,000 100, Feb 6 20,000 120, Feb 12 15,000 135, Feb 1 5 Check# 51 5,000 130, Feb 31 Check# 53 18,000 112, Service Charge 150 111, Problem II The information below relates to CHARMAINE COMPANY’s cash in bank: Balance per bank statement, December 31, 2020 27, Collections recorded but not yet deposited in bank 1, NSF check – not recorded on books nor redeposited 2, Bank charges not recorded 40 Note collected by bank and not recorded on books 2, Outstanding checks 3, The cash balance in the books Charmaine Company on December 31, 2020 , is: 26, Problem III The following data were taken from Garay’s check register for the month of April. Garay’s bank reconciliation for March showed one outstanding check, check no. 178 for P2,150 (written on March 20), and one deposit in transit for P4, (made on March 31). Date ( 2020 ) Item Checks Deposits Balance April 01 Beginning bal. 6, 01 Deposit 26,167 32, 01 Check no. 179 250 32, 04 Check no. 180 10,673 21, 27 Deposit 11,774 33,67 2 29 Check no. 181 13,217 20, The following is from Garay’s bank statement for April: Date ( 2020 ) Item Checks Deposits Balance April 01 Beginning bal. 3, 03 Check no. 179 250 3, 03 Deposit 4,350 8, 05 Check no. 180 10,673 (2,623) 05 Automatic loan 8,150 5, 05 Deposit 26,417 31, 20 NSF Check 1,000 30, 20 Service charge 600 30, 30 Interest 82 30, Assume that any errors or discrepancies you find are Garay’s, not the bank’s. What is the adjusted cash balance as of April 30 26,
PROBLEM IV
On July 7, 2020 , Aning Corporation received its bank statement for the month ending June 30. The statement showed a P209,500 balance while the cash account balance on June 30 was P35,000. In reconciling the balances, the auditor discovered the following: a) The June30 collections amounting to P176,000 were recorded in the books but were not deposited until July. b) The bank charged the company for DAUD ( Drawn Against Uncollected Deposit) check of a customer. c) A paid check for P24,300 was entered incorrectly in the cash disbursements journal as P42,300. d) Outstanding checks as of June 30 totaled P354,400.
- What is the amount if the customer’s DAUD check? 21,
- The adjusted cash balance is 31,
- The cash balance per ledger should be increased (decreased) by (3,900)
- What are the adjusting journal entries (Dr)AR 21,900 (Cr) Cash 21,900; (Dr.) Cash 18,000 (Cr.) AP 18, PROBLEM V Stiner, Inc.’s checkbook balance on December 31, 20 21 was P27,200. In addition, Stiner held the following items in its safe on December 31. (1) A check for P450 from Peters, Inc. received December 30, 2021 , which was not included in the checkbook balance. (2) An NSF check from Garner Company in the amount of P700 that had been deposited at the bank, but was returned for lack of sufficient funds on December 29. The check was to be redeposited on January 3, 20 22. The original deposit has been included in the December 31 checkbook balance. (3) Coin and currency on hand amounted to P1,450. The proper amount to be reported on Stiner's balance sheet for cash at December 31, 20 21 is Answer: P28,400. PROBLEM VI The cash account shows a balance of P38,000 before reconciliation. The bank statement does not include a deposit of P2,300 made on the last day of the month. The bank statement shows a collection by the bank of P940 and a customer's check for P220 was returned because it was NSF. A customer's check for P450 was recorded on the books as P540, and a check written for P79 was recorded as P97. The correct balance in the cash account was Answer: P38,648. PROBLEM VII In preparing its May 31, 20 21 bank reconciliation, Dogg Co. has the following information available: Balance per bank statement, 5/31/ 21 P27, Deposit in transit, 5/31/ 21 5, Outstanding checks, 5/31/ 21 4, Note collected by bank in May 1, The correct balance of cash at May 31, 20 21 is Answer: P27,500. PROBLEM VIII In preparing its August 31, 2021 bank reconciliation, Cloud Corp. has available the following information: Balance per bank statement, 8/31/ 21 P25, Deposit in transit, 8/31/ 21 5, Return of customer's check for insufficient funds, 8/30/ 21 600 Outstanding checks, 8/31/ 21 2, Bank service charges for August 100 At August 31, 20 21 , Cloud's correct cash balance is Answer: P28,800. PROBLEM IX Sandy, Inc. had the following bank reconciliation at March 31, 20 21 : Balance per bank statement, 3/31/ 21 P37, Add: Deposit in transit 10, 47, Less: Outstanding checks 22 , Balance per books, 3/31/ 21 P34, Data per bank for the month of April 20 21 follow: Deposits P42, Disbursements 49, All reconciling items at March 31, 20 21 cleared the bank in April. Outstanding checks at April 30, 20 21 totaled P5,000. There were no deposits in transit at April 30, 20 21. What is the cash balance per books at April 30, 2021? Answer: P25,
