Problem 3

The cash account of Starlight Company shows the following activities: BANK STATEMENT

Date Debit Credit Balance Date Check # Charges Credits

Nov. 30 Balance 115,000 Dec. 1 792 2,500 8,5000
Dec. 2 November Bank Charges 50 114,950 2 802 3,000 11,000
4 November Bank Credit or Notes 10,000 124,950 3 - - 21,300
Receivable collected 4 804 3,000 20,000

a
15 NSF Check 1,300 123,650 5 EC 81,000 81,000

vi
20 Loan proceeds 48,500 172,150 8 805 12,000 95,000
21 December Bank Charges 60 172,090 9 CM 16 - 12,000
31 Cash receipts book 707,300 879,390 10 799 7,050 154,000

d
31 Cash disbursements book 408,000 471,390 11 DM 57 1,300 77,000

e
12 808 30,000 21,000
CASH BOOKS 15 803 1,000 -

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16 809 61,000 85,000
Receipts Payments 17 DM 61 60 8,000

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Date OR # Amount Check # Amount 18 813 20,000 19,000
Dec. 1 110-120 11,000 801 2,000 19 CM 20 - 48,500
2 121-136 21,300 802 3,000 22 815 6,000 -

as
3 137-150 20,000 803 1,000 23 816 36,000 47,000
4 151-165 56,000 804 3,000 23 811 8,000 -
5 39,000 805 12,000

w
166-190 23 801 2,000 -
8 191-210 66,000 806 19,000 26 814 22,000 32,000
9 211-232 88,000 807 26,000 28 818 50,000 74,000

m e
10 233-250 77,000 808 30,000 28 DM 112 120 -
11 251-275 21,000 809 61,000
12
15
276-300
301-309
30,000
55,000 co rc810
811
7,000
8,000
29
29
29
821
CM 36
820
3,000
-
4,000
5,000
12,000
-
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16 310-350 8,000 812 16,000 P 353,030 P 831,300
17 351-390 19,000 813 20,000
18 391-420 9,000 814 22,000
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19 421-480 17,000 816 36,000 Additional Information:

22 481-500 21,000 817 11,000  DMs 61 and 112 are for service charges
23 501-525 32,000 818 50,000  EC is error corrected
23 - - 819 7,000
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 DM 57 is for an NSF Check

23 - - 820 4,000  CM 20 is for loan proceeds, net of P150 interest charges for 90 days
26 526-555 74,000 821 3,000  CM 16 is for correction of an erroneous November bank charge
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28 556-611 5,000 822 12,000

 CM 36 is for customers’ notes collected by bank in December.
28 - - 823 13,000
 Bank balance on December 31 is P592,270.
29 612-630 38,000 824 29,000
s
H

29 - - 825 2,000
is

29 - - 826 11,000
Totals P 707,300 P 408,000
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 Required:
a. Total outstanding checks at November 30 Problem 2
b. Total outstanding checks at December 31
c. Deposit in Transit at November 30 Morning Star Company’s Check Register shows the following entries for the
d. Deposit in Transit at December 31 month of December:
e. Adjusted book balance at November 30
f. Adjusted bank receipts for the month of December Date Checks Deposits Balance

a
g. Adjusted book disbursements for the month of December 2018

vi
h. Adjusted bank balance at December 31 Dec. 1 Beginning Balance 89,300
i. Prepare a proof of cash. 5 Deposit 65,000 154,300
7 Check # 14344 32,500 120,800

d
11 Check # 14345 14,000 106,800

e
Problem 1 26 Deposit 49,000 155,800
29 Check # 14346 8,600 147,200

ar
Star Struck Company was organized on January 2, 2018. The following items
are from the company’s trial balance on December 31, 2018. Morning Star’s bank reconciliation for November revealed one outstanding

sh
check (# 14343) for P12,000 (written on November 28), and one deposit in
Ordinary share capital 1,500,000 transit for P5,550 (made on November 29).
Share Premium 150,000

as
Merchandise Inventory 69,000 The following is from Morning Star’s Bank Statement for December 2018:
Land 1,000,000
Building 1,400,000 Date Checks Deposits Balance

w
Furniture and Fixtures 367,000 2018
Accounts Receivable 165,400 Dec. 1 Beginning Balance 95,750

m e
Accounts Payable 389,650 1 Deposit 5,550 101,300
Notes Payable-Bank 500,000 4 Check # 14344 32,500 68,800
Sales
co rc
Operating Expenses (including depreciation of P400,000)
6,235,200
1,005,150 14
5 Deposit
Check # 14345 14,000
56,000 124,800
110,800
o. ou
15 Loan proceeds 500,000 610,800
Additional Information: 20 NSF Check 7,600 603,200
Deposit in Transit, December 31 384,660 29 Service Charge 1,000 602,200
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Service Charge for December 2,000 31 Interest 3,600 605,800

Outstanding Checks, December 31 475,000
,Bank Balance, December 31 892,000 Assume that all errors were committed by Morning Star Company.
Star Struck Company’s mark up on sale is 30%
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Required:
Required: a. Adjusted Cash Balance on November 30, 2018
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a. What is the total collections from sales? b. Outstanding Checks on December 31, 2018
b. What is the total payments for merchandise purchases? c. Deposit in Transit on December 31, 2018
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c. What is the total cash receipts per books? d. Total Bank Receipts on December 31, 2018
d. What is the total cash disbursements per books? e. Adjusted Cash Balance on December 31, 2018
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e. What is the cash balance per books on December 31?

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