Saint Columban College

College of Business Education

2nd Semester, 2019-2020
ACCTG 107 – INTERMEDIATE ACCOUNTING I

BANK RECONCILIATION

PROBLEM 1
Magnificent Company provided the following data for the month of May of the current year:
Cash balance per accounting record 1,719,000
Cash balance per bank statement 3,195,000
Bank Service Charge 10,000
Debit Memo for the cost of printed checks delivered by the bank 12,000
Outstanding checks (including certified check of P65,000) 750,000
Deposit of May 30 not recorded by bank until June 1 500,000
Proceeds of bank loan on May 30, not recorded in the accounting record, net of P30,000 interest 570,000
Proceeds from a customer’s promissory note, principal amount P800,000 collected by the bank not taken 810,000
up in the book with interest
Check No. 1086 issued to a supplier entered in the accounting record as P210,000 but deducted in the 120,000
bank statement at an erroneous amount of
Stolen check lacking an authorized signature, deducted from the entity’s account by the bank in error 80,000
Customer’s check returned by the bank marked NSF; no entry has been made in the accounting record to 77,000
record the returned check
Required: Prepare bank reconciliation under the:
a. Adjusted balance method
b. Bank to book method
c. Book to bank method

PROBLEM 2
1. In preparing the bank reconciliation for the month of August, Apex Company provided the following information:

Balance per bank statement 1,805,000

Deposit in transit 325,000
Return of customer’s check for insufficient fund 60,000
Outstanding checks 275,000
Bank service charge for August 10,000

What is the adjusted cash in bank?

a. 1,855,000
b. 1,795,000
c. 1,785,000
d. 1,755,000

2. Mindanao Company provided the following data for the month of December:

Balance per book 1,000,000

Bank service charges 3,000
Outstanding checks 235,000
Deposit in transit 300,000
Customer note collected by bank 375,000
Interest on customer note 15,000
Customer check returned NSF 62,000
Depositor’s payment of note payable charged to account 250,000

1. What is the adjusted cash in bank?

a. 1,575,000
b. 1,065,000
c. 1,075,000
d. 1,325,000

2. What is the unadjusted cash in bank per bank statement?

a. 1,310,000
b. 1,010,000
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 c. 775,000
d. 945,000

PROBLEM 3
The following information pertains to FLINT CORP:
Balance per bank statement, Nov. 30 P 435,000
Less: Outstanding Checks
No. 4321 P 6,000
No. 4329 15,000
No. 4340 1,700
No. 4341 4,675 27,375
P 407,625
Add: Deposit in Transit 16,200
Balance per books, Nov. 30 P423,825
CHECK REGISTER
December 2016
Date Payee No. Vouchers Discount Cash
Payable
Dec. 1 San Beda 4342 P 10,000 P 500 P 9,500
3 Miriam Corp 4343 4,200 4,200
7 UE Enterprises 4344 3,755 3,755
12 PSBA Corp 4345 12,000 120 11,880
15 Payroll 4346 96,000 96,000
16 BU, Inc 4347 6,300 6,300
18 New Era Co. 4348 14,200 142 14,058
21 UST, Inc 4349 7,000 7,000
22 Petty Cash Fund 4350 10,000 10,000
28 Payroll 4351 98,000 98,000
P261,455 P762 P260,693

CASH RECEIPTS JOURNAL

Date Amount
Dec 5 P 49,000
8 14,000
31 49,000
Total P112,000

BANK STATEMENT
Date Description Check No. Debit Credit Balance
Balance last statement P435,000
Dec 1 Cash Deposit P 16,200 451,200
1 Check Issued 4329 P15,000 436,200
4 Check Issued 4342 9,500 426,700
4 Check Issued 4341 4,675 422,025
5 Check deposit 49,000 471,025
6 Check Issued 4343 4,200 466,825
8 Check deposit 14,000 480,825
10 Check Issued 4344 3,755 477,070
15 Encashment 4346 96,000 381,070
22 Encashment 4350 10,000 371,070
28 Encashment 4351 98,000 273,070
29 Debit Memo- 1,000 272,070
Service Charge
29 Credit Memo- 1,550 273,620
Interest

1. What is the cash balance per books on December 31, 2014?

a. P275,132
b. P226,132
c. P291,332
d. P274,370

2. What is the total outstanding checks on December 31, 2014?

a. P68,313
b. P39,238
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 c. P46,938
d. P40,938

3. What is the adjusted cash balance on November 30,2014?

a. P446,375
b. P417,825
c. P423,825
d. P435,000

4. What is the adjusted cash balance on December 30,2014?

a. P281,682
b. P275,682
c. P226,682
d. P274,920

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