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PROBLEM 1-14: BANK RECONCILIATIO : UNADJUSTED TO ADJUSTED BALANCES

EDGARDO CO. was organized on January 2, 12014. The following items are from the company's
trial balance on December 31, 2014
Ordinary Share capital 1,500,000
Share Premium 150,000
Merchandise Inventory 69,000
Land 1,000,000
Building 1,400,000
Furniture and Fixtures 367,000
Accounts Receivable 165,400
Accounts Payable 389,650
Notes payable - bank 500,000
Sales 6,235,200
Operating Expenses (including depreciation of P400,000) 1,005,150
Additional Information is as follows:
1. Deposit in Transit. December 3 384,660
2. Service charge for December 2,000
3. Outstanding checks, December 31 475,000
4. Bank balance, December 31 892,000
5. Edgardo Co.'s mark up on sales is 30%

1. What is the tital collections from sales?


a. 6,114,967 c. 6,235,200
b. 4,119,240 d. 6,069,800

2. What is the total payments for merchandise purchases?


a. 3,905,990 c. 4,043,990
b. 4,649,140 d. 6,069,800

3. What is the total cash receipts per books?


a. 7,819,800 c. 8,219,800
b. 8,169,800 d. 8,069,800

4. What is the total cash disbursements per books?


a. 7,816,140 c. 8,021,290
b. 7,416,140 d. 7,278,140

5. What is the cash baalnce per books on December 31?


a. 653,660 c. 1,203,660
b. 803,660 d. 707,060

6. What is the adjusted cash balance on December 31?


a. 801,660 c. 1,201,660
b. 651,660 d. 803,660
PROBLEM 1-15: COMPUTATION OF CASH RECEIPTS & DISBURSEMENTS
In connection with yout audit of the cash account of ANNIE CORP., you gathered the
following information.

a. Balance per bank, December 1, 2014 145,000


b. Total bank receipts (credits) in December 346,000
c. Balance per bank, December 31, 2014 114,500
d. Outstanding checks, No. 30, 2014 (including checks issued 67,000
in November)
e. Outstanding checks, December 31, 2014 (including checks 94,162
issued in November)
f. Deposit in transit, November 30, 2014 39,458
g. A customer's check received on December 4, 2014, was
returned by bank on December 7 marked "NSF". It was
redeposited on Decemeber 8,2014. The only entry made was
made to take up the collection on December 4, 2014 11,143

1. What is the total book receipts in December?


a. 295,399 c. 334,857
b. 306,542 d. 346,000

2. What is the total bank disbursements in December?


a. 315,500 c. 231,500
b. 376,500 d. 201,000

3. What is the total book disbursements in December?


a. 447,519 c. 403,662
b. 331,519 d. 392,519
PROBLEM 1-17: BANK RECONCILIATION
The cash receipts and the cash payment of LIEZEL COMPANY for April 2014 follows:

Cash Receipts (CR) Cash Payment (CP)


Date Cash Debit Check No. Cash Credit
2-Apr 208,700 4113 44,550
8-Apr 20,350 4114 7,350
10-Apr 27,950 4115 96,500
16-Apr 109,350 4116 33,200
22-Apr 92,700 4117 73,600
29-Apr 53,000 4118 50,000
30-Apr 16,850 4119 31,600
Total 528,900 4120 83,750
4121 5,000
4122 120,650
TOTAL 546,200

The cash account of Liezel Company shows the following information at April 30, 2014:
CASH
Date Item Ref. Debit Credit Balance
1-Apr Balance 95,550
30-Apr CR 6 528,900 624,450
30-Apr CP 11 546,200 78,250

Leizel Company received the following bank statement on April 30, 2014:
Bank Statement for April 2014
Beginning Balance 95,550
Deposits and other credits:
April 1 16,300 EFT
4 208,700
9 20,350
12 27,950
17 109,350
22 68,400 BC
23 92,700 543,750
Check and other Debits
April 7 44,550
13 69,500
14 45,150
15 7,350
18 33,200
21 10,950
26 73,600
30 50,000
30 1,000 (335,300)
Ending Balance 304,000
Explanation:
EFT - electronic fund transfer BC - bank collection
US - unauthorized signature SC - service charge

Additional data for the bank reconciliation include the following:


a. The EFT deposit was a receipt for monthly rent. The EFT debit was a monthly insurance
payment.
b. The unauthorized signature check was received from Lester Soon.
c. The P68,400 bank collection of a note receivable on Aprill 22 included a P9,250 interest
revenue
d. The correct amount of check number 4115, a payment on account, is P69,500. (Liezel's
accountant mistakenly recorded the check for P96,500)

1. What is the amount of deposits in transit on April 30?


a. 53,000 c. 45,150
b. 69,850 d. 115,000

2. What is the amount of outstanding checks on April 30?


a. 241,000 c. 286,150
b. 337,500 d. 310,500

3. What is the amount of bank receipts in April?


a. 543,750 c. 459,050
b. 527,450 d. 528,900

4. What is the amount of bank disbursements in April?


a 290,150 c. 289,150
b. 335,300 d. 316,150

5. What is the correct cash balance as of April 30?


a. 132,850 c. 122,150
b. 87,700 d. 223,150
PROBLEM 1-16: PETTY CASH FUND: BANK RECONCILIATION
Your audit of the cash account of JUNE CORP. disclosed the following information:

1 Cash in bank balance per books, Dec. 31, 2014 35,000


2 Bank statement balance, December 31, 2014 60,000
3 Note collected by bank in December (principal plus interest
of P800, less collection fee of P200) 27,600
4 Denit memo for a checkbook ?
5 Deposits in transit, Dec. 31, 2014 15,200
6 Transposition error made by bank in recording deposit of
Decmber 28:
Correct amount 45,000
Recoded as 54,000 99,000
7 Erroneous bank debit 26,700
8 Included in the Cash in bank account is petty cash fund of
P10,000. Yout count on December 31, 2014, revealed the
following fund items:
Currency and coins 3,000
Supplies 2,400
Transportation 100
IOUs 4,000 9,500
9 Erroneous bank credit 11,000
10 Outstanding checks (including a certified check of P10,000) 39,400

1. What is the principal amount of the note collected by bank in December?


a. 27,600 c. 28,200
b. 26,800 d. 27,000

2. What is the adjusted cash in bank balance at December 31,2014?


a. 52,500 c. 53,000
b. 52,700 d. 51,900

3. The cost of checkbook is


a. 600 c. 0
b. 300 d. 100

4. What is the amount of petty cash shortage at December 31, 2014?


a. 400 c. 100
b. 500 d. 0

5. What is the adjusted petty cash balance?


a. 9,500 c. 3,000
b. 3,500 d. 10,000
PROBLEM 1-18: BANK RECONCILIATION: UNADJUSTED TO ADJUSTED BALANCES
FERMIN COMPANY's check register shows the following entries for the month of December:
DATE CHECKS DEPOSITS BALANCE
Dec. 1 Beginning Balance 89,300
5 Deposit 65,000 154,300
7 Check # 14344 32,500 120,800
11 Check # 14345 14,000 106,800
26 Deposit 49,000 155,800
29 Check # 14346 8,600 147,200

Fermin's bank reconciliation for November revealed one outstanding check (no. 14343) for
P12,000 (written on November 28), and one deposit in transit for P5,550 (made of Nov. 29)

The following is from Fermin's bank statement for Decemeber 2014:


DATE CHECKS DEPOSITS BALANCE
Dec. 1 Beginning Balance 95,750
1 Deposit 5,550 101,300
4 Check No. 14344 32,500 68,800
5 Deposit 56,000 124,800
14 Check No. 14345 14,000 110,800
15 Loan proceeds 500,000 610,800
20 NSF check 7,600 603,200
29 Service charge 1,000 602,200
31 Interest 3,600 605,800

Assume that all errors were committed by Fermin Company, not the bank.

Based on the preceding information, determine the following:

1. Adjusted cash balance on November 30


a. 89,300 c. 102,200
b. 95,750 d. 101,300

2. Outstanding checks on December 3


a. 46,500 c. 8,600
b. 45,500 d. 20,600

3. Deposit in transit on december 31


a. 52,600 c. 5,550
b. 49,000 d. 43,450

4. Total bank receipts in December


a. 114,000 c. 565,150
b. 119,550 d. 61,550
5. Adjusted cash balance on December 31
a. 663,800 c. 748,200
b. 634,200 d. 597,200