Problem 1

A count of the undeposited receipts under the custody of T. Covie, cashier of Pandemic Company,
on July 1, 2020, 9AM, showed the following composition:

Currency and coins ₱14,750

Checks:
Date Payee Drawer Amount
6/28/20 Cash T. Covie ₱1,000
6/28/20 Pandemic Co. Maharlika Corp. 3,400
6/30/20 Pandemic Co. V. Santos 2,500
6/30/20 Davao Light Pandemic Co. 1,900 8,800
Postage and document stamps 120
Paid vouchers covering transportation expenses 1,200
Customer's check returned by bank, NSF 900
Money in envelop with list of contributors to
Sweepstakes pool 800
IOUs from employees 500
Total ₱27,070

Of the cashier's accountability is P24,500, what is the amount of cash overage or shortage,
if there's any, to be reported on July 1, 2020?
Use this sheet for your answer.
Problem 2
Rose Company uses a calendar-year accounting period. The following information is available about the company's cash:

Rose Company
Bank Reconciliation
April 30
Balance per bank statement ₱4,942
Add: Deposit in transit 610
₱5,552
Deduct: Outstanding checks
No. 606 177
No. 607 248 425
Correct cash balance ₱5,127

Balance per books ₱5,139

Deduct: Bank service charge 12
Correct cash balance ₱5,127

First National Bank

General Account: Rose Company
Date Debits Credits Balance
04-30 ₱4,942
05-01 610 5,552
05-02 177 5,375
05-04 248 755 1,552 5,924
05-05 437 5,487
05-09 489 3,621 8,619
05-12 705 1,986 9,900
05-20 930 8,970
05-22 423 8,547
05-26 2,549 11,096
05-29 255 NSF 10,841
05-30 20 DM 5,798 5,023
05-31 14 SC 1,290 CM 6,299
Total debits P10,251 Total credits P11,608
Legend: DM: Debit Memo NSF: No sufficient funds check
CM: Credit Memo SC: Service charge

Rose Company's Cash Account

Taken From General Ledger
Balance, April 30 ₱5,139 Cash disbursement
Cash receipts journal, May 31 10,816
journal, May 31 10,583

Cash receipts journal Cash payments journal

Date Cash debit Date Check No. Cash credit
05-03 ₱1,552 05-01 608 ₱755
05-08 3,621 05-03 609 473
05-12 1,986 05-06 610 489
 05-25 2,549 05-11 611 705
05-31 875 05-16 612 930
₱10,583 05-21 613 243
05-27 614 511
05-29 615 5,798
05-30 616 346
05-31 617 566
₱10,816

Additional information:
1. During May, a collection charge of P20 that was applicable to Rosal Company was erroneously
deducted by the bank from Rose Company's account.
2. The credit memo shown on the bank statement relates to a note that the bank collected on Rose's
behalf. The note had a face value of P1,200 and Rose earned interest of P90 during the current accounting
period. The company has not yet recorded the collection.
3. Rose failed to record the bank service charge for April (see April collection).
4. The NSF check shown on the bank statement had been received during May from a customer on account.
The return of check has not yet been recorded by Rose.
5. Rose made two errors in recording cash payments during May:
Check No. Actual amount of check Amount recorded
609 ₱437 ₱473
613 423 243
Check No. 69 was for delivery expense; check no. 613 was issued to purchase equipment.

Require:
a) Prepare a bank reconciliation dated May 31.
b) Prepare the necessary journal entries.
Use this sheet for your answer.