PROBLEM 3

QUESTION 1:

A. BANK RECONCILIATION

Balance per Book 5,313.00

Add: Credit Memo 3,565.00
Less: Debit Memo -1,860.00
BSC -62.00
Add/Less Book error
Overstatement -198.00

Adjusted Balance, Book 6,758.00

QUESTION 2: BANK RECONCILIATION

ENTITY A
Bank Reconciliation
March 31, 20x1

Balance per Book 280,000.00

Add: Credit Memo 20,000.00
Less: Debit Memo -15,000.00
Add/Less Book error
Understatement 45,000.00

Adjusted Balance, Book 330,000.00

QUESTION 3:

A. BANK RECONCILIATION

Balance per Book 260,000.00

Add: Credit Memo 30,000.00
Less: Debit Memo -5,000.00
Add/Less Book error

Adjusted Balance, Book 285,000.00

B. ADJUSTING (RECONCILING) ENTRIES

AJE# 1 Cash
Accounts Receivable
To record the collection of account receivable

AJE# 2 Accounts Receivable

Cash
To record the NSF check back to account receivable

QUESTION 4: PROOF OF CASH

30 - Jul Receipts
Per books 132,200.00 60,000.00
ADD: CREDIT MEMO
July 10,000.00 -10,000.00
August 35,000.00
LESS: DEBIT MEMO
July -7,800.00
August
Book error:
August 2,800.00
Adjusted bal. 134,400.00 87,800.00

30 - Jul Receipts
Per bank 100,600.00 89,000.00
ADD: DEPOSIT IN TRANSIT
July 45,000.00 -45,000.00
August 43,800.00
LESS: OUTSTANDING CHECKS
July -11,200.00
August
Adjusted bal. 134,400.00 87,800.00

QUESTION 5: PROOF OF CASH

31-Mar Receipts
Per books 400,000.00 180,000.00
ADD: CREDIT MEMO
March 36,000.00 -36,000.00
April 23,000.00
LESS: DEBIT MEMO
March -10,000.00
 April
ADD/LESS Book error:
April
Adjusted bal. 426,000.00 167,000.00

31-Mar Receipts
Per bank 280,000.00 190,000.00
ADD: DEPOSIT IN TRANSIT
March 169,000.00 -169,000.00
April 136,000.00
LESS: OUTSTANDING CHECKS
March -23,000.00
April
ADD/LESS Bank error:
April 10,000.00
Adjusted bal. 426,000.00 167,000.00

QUESTION 6: PROOF OF CASH

30-Jun Receipts
Per books 382,500.00 180,900.00
ADD: CREDIT MEMO
June 74,200.00 -74,200.00
July 262,800.00
LESS: DEBIT MEMO
June -2,000.00
July
ADD/LESS Book error:
June 36,340.00 -36,340.00
July
Adjusted bal. 491,040.00 333,160.00

30-Jun Receipts
Per bank 365,380.00 396,340.00
ADD: DEPOSIT IN TRANSIT
June 169,000.00 -169,000.00
July 136,000.00
LESS: OUTSTANDING CHECKS
June -23,000.00
July
ADD/LESS Bank error:
June -20,340
July -30,180.00
 Adjusted bal. 491,040.00 333,160.00

QUESTION 7: PROOF OF CASH

31-Mar Receipts
Per books 396,600.00 180,000.00
ADD: CREDIT MEMO
March 36,000.00 -36,000.00
April 42,000.00
LESS: DEBIT MEMO
March -10,920.00
April
ADD/LESS Book error:
March -27,000.00
April
Adjusted bal. 394,680.00 186,000.00

31-Mar Receipts
Per bank 280,900.00 191,380.00
ADD: DEPOSIT IN TRANSIT
March 46,780.00 -46,780.00
April 131,400.00
LESS: OUTSTANDING CHECKS
March -23,000.00
April
ADD/LESS Bank error:
April 90,000 -90000
Adjusted bal. 394,680.00 186,000.00
 Balance per Bank 6,200.00
Add: Deposit in Transit 2,418.00
Less: Outstanding Check -2,790.00
Add/Less Book error
Understatement 930.00

Adjusted Balance, Bank 6,758.00

A
ciliation
20x1

Balance per Bank 320,000.00

Add: Deposit in Transit 75,000.00
Less: Outstanding Check -25,000.00
Add/Less Bank error
Overstatement -40,000.00

Adjusted Balance, Bank 330,000.00

Balance per Bank 205,000.00

Add: Deposit in Transit 102,000.00
Less: Outstanding Check -22,000.00
Add/Less Bank error

Adjusted Balance, Bank 285,000.00

 30,000.00
30,000.00

5,000.00
5,000.00
ount receivable

Disbursements 31 - Aug
12,200.00 180,000.00

35,000.00

-7,800.00
8,900.00 -8,900.00

2,800.00
13,300.00 208,900.00 222,200.00

Disbursements 31 - Aug
20,600.00 169,000.00

43,800.00

-11,200.00
3,900.00 -3,900.00
13,300.00 208,900.00 222,200.00

Disbursements 30-Apr
40,000.00 540,000.00

23,000.00

-10,000.00
 16,000.00 -16,000.00

-9,000.00 9,000.00
37,000.00 556,000.00 593,000.00

Disbursements 30-Apr
30,000.00 440,000.00

136,000.00

-23,000.00
30,000.00 -30,000.00

10,000.00
37,000.00 556,000.00 593,000.00

Disbursements 31-Jul
36,400.00 527,000.00

262,800.00

-2,000.00
6,000.00 -6,000.00

54,280.00 -54,280.00
94,680.00 729,520.00 824,200.00

Disbursements 31-Jul
108,020.00 653,700.00

136,000.00

-23,000.00
30,000.00 -30,000.00

-20,340
-30,180.00
 94,680.00 729,520.00 824,200.00

Disbursements 30-Apr
36,600.00 540,000.00

42,000.00

-10,920.00
16,020.00 -16,020.00

-27,000.00
9,000.00 -9,000.00
23,700.00 556,980.00 580,680.00

Disbursements 30-Apr
26,900.00 445,380.00

131,400.00

-23,000.00
19,800.00 -19,800.00

23,700.00 556,980.00 580,680.00