ESPANOLA, CINDY MAE SARAH L.

SECOND BANK Date

Dec. 1 Balance 100,000 Dec. 1 Check No. 771 20,000 Dec.
6 Deposit 30,000 4 772 5,000
12 Deposit 40,000 6 773 35,000
24 Deposit 50,000 10 774 15,000
31 Deposit 60,000 14 775 30,000
18 776 25,000
24 777 40,000
Balance 280,000 170,000
Total Bal. 110,000

REQUIRED:
a. Prepare a bank reconciliation statement on December 31.
SENSIBLE COMPANY
BANK RECONCILIATION
DECEMBER 31, 20A
Book Balance 110,000
Add: Credit Memo from collected notes 45,000
Total 155,000
Less: Debit Memo (Service charge) (5,000)
NSF Check (10,000)
Book Error (52,000 - 25,000) (27,000) (42,000)
Adjusted Book Balance 113,000

Bank Balance 135,000

Add: Deposit in Transit 60,000
Bank error 8,000 68,000
Total 203,000
Less: Outstanding Checks
No. 770 (20,000)
No. 775 (30,000)
No. 777 (40,000) (90,000)
Adjusted Bank Balance 113,000
 Checks Deposits Balance
1 Balance 130,000
check No. 768 10,000 120,000
1 771 20,000 100,000
4 772 5,000 95,000
6 773 35,000 30,000 90,000
12 774 15,000 40,000 115,000
12 776 52,000 63,000
24 1,042 8,000 50,000 105,000
28 NSF Check 10,000 DM 45,000 CM 140,000
28 Service Charge 5,000 DM 135,000
Total Bal.

b. Prepare adjusting entries on December 31.

Dec. 31 Cash in Bank 45,000

Bank Service Charge 5,000
Notes Receivable 50,000
31 Service Charge 5,000
Accounts Receivable 10,000
Accounts Payable 27,000
Cash in Bank 42,000
Bank Reconciliation (January 31)

Bank Balance 300,000

Add: Deposit in Transit 600,000
Total 900,000
Deduct Outstanding Checks:
No. 114 (240,000)
No. 115 (160,000)
No. 116 (60,000) (460,000)
Adjusted Bank Balance 440,000

Bank Statement for the month of February

THIRD BANK
Checks Deposit Date Balance
Balance forwarded Jan. 31 300,000
240,000 600,000 Feb. 1 660,000
2,000,000 3 2,660,000
200,000 5 2,460,000
900,000 400,000 7 1,960,000
160,000 9 1,800,000
1,000,000 10 2,800,000
500,000 13 2,300,000
1,200,000 16 3,500,000
1,300,000 21 4,800,000
550,000 23 4,250,000
5,000 SC 24 4,245,000
1,000,000 550,000 27 3,795,000
800,000 270,000 CM 28 3,265,000 Total Bank Bal.

REQUIRED:
a. Prepare bank reconciliation on February 28, showing the book balance before
and after adjustment.
XAVIER COMPANY
BANK RECONCILIATION
FEBRUARY 26, 20A

Book Balance 2,840,000

Add: Credit Memo (collected notes) 270,000
Total 3,110,000
Less: Debit Memo (SC) (5,000)
Adjusted Book Balance 3,105,000
Bank Balance 3,265,000
Add: Deposit in Transit 450,000
Total 3,715,000
Less: Outstanding Checks
No. 116 (60,000)
122 (180,000)
124 (120,000)
125 (250,000) (610,000)
Adjusted Bank Balance 3,105,000
Credit Memo (February 28)

Face of the note 250,000

Interest on the note 30,000
Maturity value of the note 280,000
Collection charge (10,000)
Credit to your account 270,000

Cash Journals of Xavier Company

Cash Receipt Journals Cash Disbursemnet Journal

Date Debit Cash Check No. Credit Cash

Feb. 2 2,000,000 117 200,000
6 400,000 118 900,000
9 800,000 119 800,000
10 200,000 120 500,000
15 1,200,000 121 550,000
20 1,300,000 122 180,000 OC
24 550,000 123 1,000,000
28 450,000 DIT 124 120,000 OC
125 250,000 OC
Balance 6,900,000 4,500,000
Total Book Bal. 2,840,000

b. Prepare journal entries to record the adjustments that are

indicated by the bank reconciliation.

Feb. 28 Cash in Bank 270,000

Service Charge 10,000
Notes Receivable 250,000
Interest Income 30,000
28 Service Charge 5,000
Cash in Bank 5,000
REQUIRED:
a. Prepare bank reconciliation on December 31.

Book Balance
Add: Credit Memo (proceeds of bank loan)
Total
Less: Debit Memo
Book Error (200,000 - 20,000)
Adjusted Book Balance

Bank Balance
Add: Deposit in Transit (undeposited collection)
Bank Error (another entity charged the Alpha Co.)
Omitted from bank statement
Total
Less: Outstanding Check
Correction of error arising from crediting Omega Company deposit to Alpha Company
Adjusted Book Balance

b. Prepare Dec. 31 Cash

Discount on Notes Payable
Notes Payable
to record adjustment of notes payable
31 Petty Cash Expense
Cash
to record petty cash expense
31 Accounts Payable
Cash
to record payment of accounts payable
 ALPHA COMPANY
BANK RECONCILIATION STATEMENT
FOR THE MONTH ENDED DECEMBER 31,2020
4,990,000
eeds of bank loan) 516,000
5,506,000

0 - 20,000) (180,000)
5,326,000

5,500,000
undeposited collection) 300,000
er entity charged the Alpha Co.) 50,000
k statement 150,000 500,000
6,000,000
(544,000)
arising from crediting Omega Company deposit to Alpha Company (130,000) (674,000)
5,326,000

516,000
on Notes Payable 84,000
es Payable 600,000
adjustment of notes payable
h Expense 10,000
h 10,000
petty cash expense
Payable 180,000
h 18,000
payment of accounts payable