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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
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.