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IV.

The accounting period of Kamia Company ends on December 31. The following information is
available about the company's cash.

Kamia Company
Bank Reconciliation
October 31

Balance per bank statement P18,005


Add: Deposit in transit 1,790
Deduct: Outstanding checks
No. 773 P4,563
No. 774 2,118
Correct cash balance P13,114

Balance per books 11,534


Add: Note collected by bank
Principal 1,500
Interest earned during current
Accounting period 100 1,600
13,134
Deduct: Bank service charge 20

Correct cash balance 13,114

Country National Bank


General Account: Kamia Company
Date Debits Credits Balance
10-31 18,005
11-01 1,790 19,795
11-02 4,563 15,232
11-04 2,118 4,567 5,967 14,514
11-05 963 13.551
11-06 3,410 16,961
11-07 2,515 14,446
11-11 1,037 15,483
11-13 2,264 13,219
11-18 3,325 9,894
11-24 964 4,255 13,185
11-28 619 750 CM 13,316
11-29 3,000 35 500 CM 10,781
11-30 665 NSF 22 10,094
Total debits 25,620 Total credits 17,709
Legend: DM: Debit memo NSF: No sufficient fund check
CM: Credit memo SC: Service Charge

Kamia Company’s Cash Account


Taken from General Ledger
Cash

Balance, Oct. 31 11,534 Cash Payments


Cash Receipts Journal, Nov. 30 21,575
Journal, Nov. 30 18,269

Information Taken from Kamia Company

Cash Receipts Journal


Date Cash Debit
11-03 5,967
11-06 3,410
11-11 1,037
11-23 4,255
11-30 3,600
18,269

Cash Payments Journal


Date Check No. Cash Credit
11-01 775 4,567
11-04 776 963
11-05 777 2,515
11-10 778 3,264
11-17 779 3,325
11-22 780 694
11-27 781 619
11-28 782 760
11-29 783 3,000
11-30 784 1,868
21,575
Additional Information:

1. After preparing the October 31 reconciliation, Kamia failed to record the necessary journal entries.
2. The NSF check had been received during November from a customer on account. Kamia has not yet
recorded the return of the check.
3. The credit memos shown on the bank statement pertain to P750 of bond interest that Kamia
earned during the current accounting period and that the bank collected on the company's behalf
(collection not yet recorded on Kamia's books) and a P500 collection made for Rosal Company that the
bank erroneously credited to Kamia's account.
4. The 35 debit memo show on the bank statement pertains to the rental of a safe deposit box during
November.
5. Kamia made two errors in recording cash payments during November.

Actual Amount
Check No. Amount of Check Recorded
778 2,264 3,264
780 964 694

Check No. 778 was issued to purchase equipment; check no. 780 was for advertising expense.

Required:
1. Prepare a bank reconciliation dated November 30.
2. Prepare the necessary journal entries.

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