BANK RECONCILIATION

A.
1 Unadjusted Book Receipts for August

August Collection
8/9/2022 10,000
8/20/2022 14,000 24,000
Deposit in Transit, end 9,400
Unrecorded deposit in July
1,000
reported in August
Note Collected by bank, recorded
8,000
in August
Unadjusted Book Receipts for August 42,400

2 Unadjusted Book Disbursement for August

Checks Withdrawn
No. 455 1,000
No. 456 700
No. 457 2,400
No. 458 1,440
No. 459 1,820
No. 460 1,000 8,360
Bank Service Charge 100
Unadjusted Book Disbursement for August 8,460

3 Adjusted Book Receipts for August

Balance per Book- receipts 42,400

Less: Credit Memo
Collected by bank- July 8,000
Unrec. Deposits - July 1,000
Adjusted Book Receipts 33,400

4 Adjusted Book Disbursement for August

Balance per Book- disbursement 8,460

Add: Debit Memo- August
NSF Checks 300
Bank Service Charge 440
Less: Debit Memo - July
Bank Service Charge 100
Adjusted Book Disbursement 9,100
 5 Adjusted Cash Balance as of August 31, 2022

Using Book Balance

Cash Balance per book

(40,000+42,400-8,460) 73,940
Add:Book debits on August -
Less: Book Credits on August
NSF checks 300
Bank Service Charge 440
Cash Balance per book, end 73,200

B PROOF OF CASH

BANK TO BOOK
Franc Company
Proof of Cash
August 31, 2022

Balance August
31-Jul Receipts Disbursements
Bank balances 52,000 25,140 9,740
Deposit in Transit
31-Jul 900 (900)
31-Aug 9,400
Outstanding Checks
31-Jul (4,000) (4,000)
31-Aug 3,600
Bank Service Charges
31-Jul 100 100
31-Aug (440)
Bank collection in July (8,000) 8,000
July deposit recorded in
August (1,000) 1,000
NSF Checks
Already redeposited (140) (140)
Not yet redeposited (300)
Bank error corrected on
the same date (100) (100)
Book balances 40,000 42,400 8,460

BOOK
 Franc Company
Proof of Cash
August 31, 2022
Balance August
31-Jul Receipts Disbursements
Balance per Book 40,000 42,400 8,460
Credit Memo
Collected by bank
July 8,000 (8,000)
Unrecorded deposit
July 1,000 (1,000)
Debit Memo
NSF Checks
31-Aug 300
Bank Service Charge
31-Jul (100) (100)
31-Aug 440
Adjusted Book Balance 48,900 33,400 9,100

BANK

Franc Company
Proof of Cash
August 31, 2022
Balance August
31-Jul Receipts Disbursements
Balance per Bank 52,000 25,140 9,740
Deposit in Transit
31-Jul 900 (900)
31-Aug 9,400
Outstanding Check
31-Jul (4,000) (4,000)
31-Aug 3,600
NSF Check (140) (140)
Error corrected (100) (100)
Adjusted Bank Balance 48,900 33,400 9,100

C BANK RECONCILIATION

BOOK

Franc Company
 Bank Reconciliation
August 31, 2022

Balance per book

(40,000+42,400-8,460) 73,940
Add:Book debits on August -
Less: Book Credits on August
NSF checks 300
Bank Service Charge 440
Adjusted Book Balance, 8/31/22 73,200

BANK

Franc Company
Bank Reconciliation
August 31, 2022

Balance per Bank

(52,000+25,140-9,740) 67,400
Add: Deposit in Transit - August 9,400
Less: Outstanding check - August 3,600
Adjusted Bank Balance, 8/31/22 73,200
NOTE: Kaya yung aug 9 at 20 ang ang included kasi yung sa august 1, yun na yung 900 na beg. Balance, tapos
yung aug 12 ay DM which is NSF check daw tapos yung sa aug 29 naman ay error kaya hindi sinama

NOTE: kaya sa check no. 455 nag start kasi ung check no. 436,450, 451 at 454 ay nabawas na,
makikita mo dun sa given.
Balance
31-Aug
67,400 August Unadjusted Bank Receipts August Unadjusted Bank Disburse
(Total Bank Credits) (Total Bank Debits)
1-Aug 900 1-Aug 1,800
9,400 9-Aug 10,000 6-Aug 1,400
12-Aug 140 9-Aug 600
20-Aug 14,000 12-Aug 140
(3,600) 29-Aug 100 15-Aug 1,000
25,140 20-Aug 700
27-Aug 1,440
440 29-Aug 100
31-Aug 440
DIT (Aug 31)- cash received for the period
aug 21- 31 that was deposited in bank on 31-Aug 300
Sep 1 1,820
9,740
OC (Aug 31)
300 Check No. 436 200
Check No. 460 1,000
Check No. 457 2,400
73,940 3600
Balance
31-Aug
73,940 NOTE: 42,400 at 8,460 galing sa book balance sa bank to book na Proof of Cash

(300)

(440)
73,200

Balance
31-Aug
67,400 NOTE: yung 25,140 at 9,740 ay same computation sa bank to book Proof of Cash

9,400

(3,600) NOTE: yung 3,600 ay same computation sa bank to book Proof of Cash

73,200
nadjusted Bank Disbursements
 na Proof of Cash

book Proof of Cash

PROPERTY, PLANT, AND EQUIPMENT

A.
1 Gain on Sale of Truck on Septermber 30

Proceeds of Sale of Truck

Less: Carrying Value of Truck Sold
Cost 48,000.00
Less: Accumulated Depreciation
Year 2021
(48,000-30,000) 18,000.00
Jan 2022-Sep 2022
[30,000 x (1/5 x 150%) x 9/12] 6,750.00 24,750.00
Gain on Sale of Truck

2 Gain on Sale of Machineries on December 20

Proceeds of Sale of Machineries

Less: Carrying Value of Machinery Sold
Gain on Sale of Machineries

3 Adjusted Balance of the Property, Plant, and Equipment as of December 31, 2022

Machinery and Equipment

Beginning Balance, 1/1/22 1,380,000
Add: Acquired, 7/1/22 (325,000+44,000) 369,000
Less: Sold, 12/20/22 17,000
Automobiles and Trucks
Beginning Balance, 1/1/22 210,000
Add: Acquired, 8/30/22 25,000
Less: Sold, 9/30/22 48,000
Leasehold Improvements
Beginning Balance, 1/1/22
Property, Plant, and Equipment, 12/31/22

4 Depreciation Expense for the year ended December 31, 2022

Machinery and Equipment

Remaining beginning balance, 1/1/22
[(1,380,000-17,000)/10 years] ₱ 136,300.00
Machine Acquired, 7/1/22
 [((325,000+44,000)/10 years) x 6/12] ₱ 18,450.00
Machine Sold, 12/20/22
(17,000/ 10 years) ₱ 1,700.00
Automobiles and Trucks
Remaining beginning balance, 1/1/22
[(210,000-114,326-30,000) x 30%] ₱ 19,702.20
Automobile Acquired, 8/30/22
[(25,000 x 30%) x 4/12] ₱ 2,500.00
Truck Sold, 9/30/22
[(30,000 x 30%) x 9/12] ₱ 6,750.00
Leasehold Improvements
Year 2022 (432,000/12 years)
Total Depreciations Expense, 12/31/22

5 Carrying amount of the Property, Plant, and Equipment as of December 31, 2022

Adjusted balance of PPE, 12/31/22

Less: Accumulated Depreciation, 12/31/22
Machinery and Equipment
Beginning Balance, 1/1/22 367,500.00
Depreciation Expense, 2022 156,450.00
Less: Machine Sold, 12/20/22
(17,000-2,975) 14,025.00
Automobiles and Trucks
Beginning Balance, 1/1/22 114,326.00
Depreciation Expense, 2022 28,952.20
Less: Truck Sold, 9/30/22 24,750.00
Leasehold Improvements
Beginning Balance, 1/1/22 108,000.00
Depreciation Expense, 2022 36,000.00
PPE Carrying Value, 12/31/22

B LAPSING SCHEDULE

Machinery and Automobiles and Leasehold

Equipment Trucks Improvements
Cost
Beginning Balance 1,380,000.00 210,000.00 432,000.00
Additions/ Transfers 369,000.00 25,000.00
Disposals 17,000.00 48,000.00
Ending Balances 1,732,000.00 187,000.00 432,000.00
Accumulated Depreciation
Beginning Balance 367,500.00 114,326.00 108,000.00
Depreciation 156,450.00 28,952.20 36,000.00
Disposals 14,025.00 24,750.00
Ending Balance 509,925.00 118,528.20 144,000.00

Net Book Value 1,222,075.00 68,471.80 288,000.00

 NOTES:

24,500.00

23,250.00 Declining depreciation (1/5 x 150%) = 30% per year

₱ 1,250.00

4,000.00
2,975.00
₱ 1,025.00

1,732,000

187,000

432,000
₱ 2,351,000.00
₱ 156,450.00

₱ 28,952.20

₱ 36,000.00
₱ 221,402.20

2,351,000 See solution on no. 3

See solution on no. 4

509,925.00

See solution on no. 4

118,528.20 See solution on no. 1

144,000.00 See solution on no. 4

₱ 1,578,546.80

TOTAL

2,022,000.00 NOTE: pagkinlick mo yung amount na nakalagay dito,

394,000.00 makikita mo kung saan galing na computation.
65,000.00
2,351,000.00
 589,826.00
221,402.20
38,775.00
772,453.20

1,578,546.80
RECEIVABLES

A.
1 Consultation Service Fee Revenue recognized in 2022

PV of Principal (1,200,000 x 0.7513) 901,560

PV of Interest (1,200,000 x 5% x 2.4869) 149,214
Consultation Service Fee Revenue 1,050,774

2 Gain on Sale of Equipment recognized in 2022

Date Principal Interest Total PVF of 1 PV

Outs. Prin *4%* year
outstanding 14%
12/31/2022 800,000 96,000 896,000 0.8772 785,971
12/31/2023 800,000 64000 864,000 0.7695 664,848
12/31/2024 800,000 32000 832,000 0.6750 561,600
2,400,000 2,012,419

PV of Notes Receivable 2,012,419

Less: Cost of Equipment 1,600,000
Gain on Sale of Equipment 412,419

3 Non-Current Notes Receivable as of December 31, 2022

Notes receivable from consultation 1,095,851

Note receivable from Sale of Equipment 729,900
Non Current Notes Receivable, 12/31/22 1,825,751

4 Current portion of Long-Term Notes Receivable as of December 31, 2022

Note receivable from sale of land 799,955

Note receivable from Sale of Equipment
(1,398,158-729,900) 668,258
Current portion of long-term Notes Receivable, 12/31/22 1,468,213

5 Interest Income recognized in 2022

Note receivable from sale of land 72,723

Notes receivable from consultation 105,077
Note receivable from Sale of Equipment 281,739
Interest Income in 2022 459,539
B. AMORTIZATION SCHEDULES FOR DECEMBER 31, 2022

Notes Receivable from Sale of Land Amortization

Interest
Date Income Carrying Amount
Prev. CA *10% Prev. CA + Int. Inc.

1/1/2022 727,232 880,000 x 0.8264 NOTE: 0.8264 is the PV of 1 at 1

12/31/2022 72,723 799,955
12/31/2023 80,045 880,000 NOTE: yung sa last year of amo
figure nalang siya since dapat a

Notes Receivable from Consultation Amortization

Effective Carrying
Date Nominal Interest Amortization
Interest Amount
Prev. CA *10% 1,200,000 * 5% Eff. Int - Nom. Int Prev. CA + Amor
1/1/2022 1,050,774
12/31/2022 105,077 60,000 45,077 1,095,851
12/31/2023 109,585 60,000 49,585 1,145,437
12/31/2024 114,563 60,000.00 54,563 1,200,000

Notes Receivable from Sale of Equipment

Effective Principal Carrying

Date Nominal Interest Amortization
Interest Collection Amount
Outs. Prin *4%* year Prev. CA + Amor-
Prev. CA *14% outstanding Eff. Int - Nom. Int Principal Coll.
1/1/2022 2,012,419
12/31/2022 281,739 96,000 185,739 800,000 1,398,158
12/31/2023 195,742 64,000 131,742 800,000 729,900
12/31/2024 102,100 32,000 70,100 800,000 -
E: 0.8264 is the PV of 1 at 10%

E: yung sa last year of amortization, kaya naging 80,045 instead na 79,995 (799,955*10%) kasi balancing
e nalang siya since dapat ang maging CA sa 12/31/23 ay saktong 880,000

NOTE: Ito yung answer sa number 1

NOTE: same sa kanina, yung sa last year of amortization, kaya naging 54,563 instead na 54,543 [(1,145,437*10%)-
60,000] kasi balancing figure nalang siya since dapat ang maging CA sa 12/31/24 ay saktong 1,200,000

NOTE: ito yung PV na makikita sa number 2 solution

NOTE: same sa kanina ulit, yung sa last year of amortization, kaya naging 70,100 instead na 70,186
[(729,900*14%)-32,000] kasi balancing figure nalang siya since dapat ang maging CA sa 12/31/24 ay zero na
 3 [(1,145,437*10%)-
1,200,000

stead na 70,186
A sa 12/31/24 ay zero na