ted) Problem 14-1 (AICPA a t balances on December Cambell Company had the £0 ra Ss ‘The Fourth Bank time deposit is a noi iti set aside for the acquisition of a oncurent sea gested The bank overdraft isa current liability, The undelivered check drawn, against in bank by debiting cash in bank, anderen reson i ea aside for land acquisition in be reported as cash and cash equivalents 160, Scanned with CamScanner dpoem 14-3 (PERL, Cantey ja ance Provided 1h, ) : i 018 ‘he following informs on hand ‘ation on December yrity Bank current 5 Current account Wort" t 500,000 Current accou 1,090,009 i easury bill 60 6 Ee 400,000 gs? treasury bill — 60 diye ran) Gl sr oncy 3,060,000 » The cash on hand j inet luded 7100.00 and postal m, Money te ae Postdated check of + Actieck 0FP200,000 in parang oo Security Bank accoun Payment o: nt, d: the payee and recorde ‘ated January 15,2019, delivered to 4 December'31, 2018. What total amount af « reported on December 31, eT my cash equivalents should be 2 47950,000 915 (1.5 b, 5,050,000 » 750,000 4d. 1,950,000 of account was drawn against Solution 14-3 Answer a Cash on hand (560,000 - 100,000 postdated check) 460,000 Security Bank current account (1,000,000 + 200,000) 1,200,000 PNB current account No. 1 400,000 PNB current account No, 2 ( 50,800) BSP treasury bill - 60 days 3,000,000 Total cash and cash equivalents 4,950,000 The bank overdraft is metted because itis in the: same bank. The postal money order is part ofcash. drawn against Security “ dated ‘of P200,000 ae is motnete dele by debiting cash in bank and crediting accounts payable. — apy 161 Scanned with CamScannerProbiem 14-4 (IAA) red cash a Ee F any repe . COU 31, 2018, Erike COMP ded the followin.’ Balance nos edge of P9900,000 vid : fn . 0,009 — Cash in bank — demand deposit = 300,099 Time deposit - 30 days 200,099 _ NSF check of customer 2 30, 2019 2,000, ; Money market placement due'on Sum 4,000,099 ~ Saving deposit 309,009 TOU from an employee 1,500,009 - Pension fund . 2019 600, Customer check dated January 31, ths 400,009 Customer check outstanding for 18 mont ‘Salon: 238.00 i ¢ le was dated © Check of P100,000 in payment of accounts payabl be and recorded on December 31, 2018 but mailed te creditors on January 15,2019, * Check of P300,000 dated January 3%, 2019 in payment of accounts payable was recorded and mailed December 31,2018, * The cash receipts journal was held open until Jonuary 15, 2019, during which time P200,006 was collected and recorded on December 31, 2018, _ What total amount should be Teported as cash and. cash equivalents on December 31, 20187 : : a. 4,700,000 b. 6,700,000 c. 4,900,000 d. 5,100,000 Scanned with CamScannert gettion Med Answer q in bank ~ demand denoe:, c depasit--30 days ee vi deposit oat esh snd cash equivalents inbank ~ demand deposig delivered check dated ang UM pecember 31,2018 but mated se postdated January 34, agp9 o7/amuary 31, 2019 coe rember 3), 2008 * 2019 recorded on jlections during January 39 300,000» colecember 31,2018 ended on = Adjusted cash in bank ; 20080) 3,200,000 qhe undelivered check and postdated , sash by debiting cash in bank and fee - ‘The window dressing of collections during January 2019 should be reversed by debiting accounts receivable und crediting cash in bank. TheNSF customer check, postdated customer check dated January 41,2019 and the customer check outstanding for 18 months should be reverted to accounts receivable, ‘The money market placement is not a cash equivalent because the term is more than 3 months, Thepension fund isa noncurrent investment. , 163 Scanned with CamScannerProblem 14-5 (LAA) On December 31. 2078, Roma Company reported cash of P9,950,009 with the following details: 600,000 ollections 0 checking account 4,000,000 ived from customer. Undeposited & Cash in bank ~ BD Undeposiied NSF check rece dated December 1, 2018 156,006 Undeposited check from a customer, dated : January 1S, 2019 259,000 Cash in bank — BDO fund for payroll 1,000,000 Cash in bank - BDO money market instrument, 90 days 2,060,000 Cash in foreign bank restricted 1,500,000 Cash in bank ~ BDO value added tax account 450,000~ Tots! 9,950,000 On December 31, 2018, what total amount should be reported as cash and cash equivalents? * 2. 7,600,000 b. 8,200,000 c. 6,050,000 d. 8,056,000 Solution 14-5. Answer d Undeposited collections BDO checking account : 600,000 BDO payroll fund 4,000,000 BDO money market 1,000,000 BDO value added tax account : 2,000,000 Total cash and cash ejaivateats 459,000 8,050,000 ‘The NSF customer check and th January 15,2019 should be rev e es customer check dated accounts receivable. ‘The restricted cash in forei; cash in foreign bank is classified as noncurrent, Scanned with CamScannert ‘ ‘ _ Company Reported ve teeter 31,2018; the fol Whaitotalanount should berepoteds pptem 14-6 (ACP) lowing information in relation to cash Checkbook balance, p4 000,000. ul ndeposited collections, p00 000 Acustomer check amounti was inchided in the December a }:00 aed ery 22719 4 = ™ d Anat co for P500,000 deposited on December Petrik for insuiesency gn Room alee at is check was redeposi - days ister. redeposited on December 26, 2018 and cleared A P400,000 check payable to i supplier dated and recorded on December 30, 2018 was mailed on January 16, 2019. Apa ish fir of S000 cnr te flowing on ese 31, 20ie: Coins and currencies 5,000 Petty cash vouchers 49,000 Refundable deposit for returnable containers” / 5,000 : : $0,000 Acheck of 49,000 was drawn on December 31, 2018 payable uh to Petty Cash. Whe Whatis the adjusted cash in bank on December 31,2018? a. 4,600,000 Peete b, 4,200,000 ~ c. 4,400,000 d. 3,700,000 cash on December 31,2018? a, 4,645,000-~ b. 4,845,000 c. 4,600,000 d. 4,650,000 165 Scanned with CamScannerSolution 14-6 Question 1 Answer 7 <0 le Checkbook balance heck erroneously includ : ed Postdated customer cM aio splice 406.009 Undelivered cheek payable Aas0omn See Adjusted cash in bank fore December 31,20} ari e checkbook balange check i cies cle Ths oo isnot lecucted anymore from Id be restored to the heck payable to supplier shou a ragneeroeere in bank and creditiny gaccounts Payable, Question 2 Answer a Cash in bank 4:200,009 Cash on hand —- undeposited collections 400,000 Petty cash furid — 45,800 ‘Fotal cash 645.000 Coins and currencies 5,006 Replenishment check a 40.00) Total petty cash 4 43.000 Beside dps fornetamabl cons is eda Scanned with CamScannerpANK RECONG pasic problems TLIATION problem 15-1 (AICPA, Adlapied) In paring the bank reco, company provided the flew for the month of August, Apex ing information: palance per bank statement sit in transix 1,805,000 “geiurn of customer ch 325,000 ‘pusending ee eck for insufficient fund on Bank service charge for August : ge : whatis the adjusted cash in bank? . 1,855,000 — b, 1,795,000 vt, 1,785,000 4d 1,755,000 Solution 15+] Answer a Balance per bank i : 1,805,000 Deposit in transit t 325,006 Total’ ~, sit 2,138,000 Outstanding checks oo . 273,00) Adjusted bank balance 1,855,009 : vee rine une t bak roe hese are ook reconelling ies, 167 Scanned with CamScannertod) 5-2 (AICPA Adapt : ae forthe month of December, Cag poepari bank _reconeilition es paar ridod the fatiowing data: sam Bslance per bank statement pn oe ey credited by frank to Case's account 40,004, Bank service charge for December «sim NSF check és 00 Outstanding checks 5,069 1, Whatis the adjusted cash in pank? 3. 3,685,000 3,645,000 6. , 3,600,000 a. 3,605,000 2 ‘What isthe unjust cash in bank balance per book? a, 3,550, 000. b. 3,660,000 &, 3.610,000 d. 3,655,000 Solution 15-2, Question 1 Answer d Question 2 Answer b Dee per bank statement itintransit Outstanding ie, 3,00,00 mo ,000 Adi froneous bank credit (675,000) usted bank balance. (40,000 outs 3,605,000 Ba sere balance (SQUEEZE) 3:605,000 SF check : é 660,000 one 5,600) ted cash in bank balance (50) 000) 3,605,000 Scanned with CamScanner[ opie 13 AA) : Company provided oo giling the cash balan the following dat f eetrgent om December 3] nee per book 8 data for the pura pune DOO gal | per cr statement, moot sanding checks, includi i 2,000,0' Hori in transit ing certified check of P100,000° 590,008 ember NSF checks (of which 200,000 : P50,00 ; ee ened on December 27 150,000 Fs of { ‘0 Core’s account, representing : ‘ roceee jonn granted to ano! eds of note collected by inother company 300,000 net of service charge of P20,000 750,000 \vhot amount should be reported as cash in bank at year-end? 4. 1,500,000 p. 1,400,0 ¢, 1,800,000 d. 1,450,000 Solution 15-3 Answer a Balance per bank z 2,000,000 Deposit in transit 200,000 Outstanding checks (500,000 -- 100,060) 5 { 400,000) Erroneous bank credit i _ (309,000) Adjusted bank balance 1,508,000 The certified check of 100,000, is no longer outstanding for reconciliation purposes. Thus, the amountis deducted from the total outstanding checks. ; . Balance per book * 850,000 “NSE checks (150,000-$0,000) (160,000) Proceeds af note collected ae 50,000 Adjusted book balance 500000 Note thet NSF checks of P50,00 are sready deposited cleared onDecember 27. 169 Scanned with CamScannerdapted) probiesn 1-4 (AICEA A os oct ooh of Mh Able Compan Taiance of tH nt nnendable, Hower 7 vue the des Aitempts 10 contact the hankafter hours did wot 04 detingy ‘ , February 28 hook balance peel Nate collected by bank oe Interest on note B 009 NS¥ check of customer iF 0,009 Bank sorvice change OF NSE check 2,009 Oxher bank service charges 3,009 Outstanding checks 7 206,009 Deposit of February 28 placed in night depository 25,000 Check issued by Axtle Company charged to ‘Able’seccount §— 20,009 Whats the ext balance prank statesmen? a 1,435,000 ‘b. 1,530,000 6. 1,340,000 d. 1,550,000 Solution 1$-4 Answer b February 28 book balance i collected by bank : ‘ 1,460,000 ioe "a ru service charges (2,000 + 3,000) * (130,000) justed book balance ¢ 5,000) Balance : 3 1,43: Deposit per bank statement (SQUEEZE) feA35.000 Beak enor one ree 1,836,000 a charge 350 usted bank balane : 0) ee : {200,000 Bint i she adjusted alan Ctlanee is “sq 7 435,000 king back from 11 Scanned with CamScannerpiest 15-8 (LAA) Company provi, diss COMPSDY Provided tg $ which ached te fyint atement for the month of si balance, December 35 ‘ormation: put sorvicw charge FOF Decen , 2,200,000 sens paid by bank to Stettar ¢, Ie 12908 paring the bank stat : : 15 ollowings emMeNt to its ovm cash records, the entity ies monde bat . pen Jit Yet recorded by the bank 350,000 aa chevks writen andl mailed but not yet recorded by the bank 650,000 jn sddition, the entity discovered that ithad drawn and erronsously corded a check for P46,000 that should have been recorded ft 64,000. Q. Pent (- —) what isthe exah balance per tedlger on December 317 2. 2,500,000 [ b. 2,520,000 ‘ f 4. 2,800,000 Solution 15-3 Answer b lance per bank ey on penoats a tranait 7 0,008 Outstanding checks (_$0,000) Adjusted bank balance 2,500,008 A 0,000 Balance per ledger (SQUEEZE) : aod acti oe ( om ange (iy = 46,000). ‘Semi nnd Book error (64,000 ~ 46) 2,500,000 Adjusted book belenee by working back from The cash balance per ledger “aneez" thendjusted balsace. 171 Scanned with CamScannerPropear 15-6 (IAA) gthe bank stotement for the month of Apri ovided the © : following inform i nee it was not collectible it 7 during April sie ar depend hed veh by the bank and ret ay and has | bank statement to its om records, the entity ud pan Letty Company P which included the Bank service change for In comparing the the following: 130,000 ied by bank its made but not yet record ae and mailed but not yet recorded by bank 100,000 All deposits in transit and outstanding checks have been properly reconied in the entity's books. . Actistomer check for P35,000 payable to Letty Company had not yet been deposited and had not been recorded by the entity, - The cash in bank account balance per ledger is P920,000. Whats the edjusted cash in bank on April 30? Depo: 2. 900,000 &. 865,000 ce. 938,006 & 965,000 Solution 15-6: Answar a = Balance per ledger Untecorded customer check : aro Bank service charge ug NSF check ( 13,000) Adjusted book balenice ‘ 3 pin 900,000 The deposits in transit and ¢ At WN Betial anh a as these are bank reconciling standing are ignored because 179 Scanned with CamScanner |oe 15-7 (IAA) ant COMPORY showed weno Bash account balance of 24,500,000 # statement did not j ae TH by ofthe month, include » deposit of P230,000 male on the « statement sho prebanks wed a coll pe sepesitor and acustomer aveneey the bank of P94,000 for ws NSP. # P.2,000 returned because i customer check for P45, 000 ,andacheck writ 1000 was recorded : 000 ck written for P79,000 was date 100. poe amount shoul what 11 be reported as cash in bank? 4,768,000 / » 4571000 J e 4,819,000 4. 4,801,000 PULA Solution 15-7 Answer b Balance per book 4 Collection by 34,000 NSF customer (32,000) Book errot — customer check 000 -45,000) { 9,000) Book error ~ check written (000 - 79,000) 18,000 Adjusted book balance As798 rosin ans czzonsebmkTenanns 175 Scanned with CamScannerpjest 7 (IAA) ye ant COMPANY showed 18 ron, Neash account balan ye nce of P4,500,000 at A statement did not include He , 1% say of the month, 8 deposit of P230,000 made on the c statement shor rebar Wed a collecti ositor and 8 ection wie customer chock for doa ot P94,000 for as NOP ,000 returned because Mt cheek f A evstomes Ns ‘Or P45,000 wi 64,000, and acheck wri as recorded by the depositor 8% os Written for P79,000 was recorded as 97,00 amount should } what bbe reported as cash in bank? 5. 45765000 b 4,571,000 2 4,819,000 é 4,301,000 { Solution 15-7 Answer b polance per book ssoneee Collection by bank 34,000 NSF customer check (32,000) Book error ~ customer cheek (54,000-45,000) (9,000) Book error ~ check written (97,000 - 79,000) 18,00 reepostin ast of P20 0 jsabakreoneing = sii. 473 Scanned with CamScannerProblem 15-8 (AAP sng nccount. Anexsminatn Aries Company Kept all : Pthe accounting recor state Lae aot jnformition: June reveniel * * ) payment of an account, payable ina checking 1 bank ntgrement for the Month ge dthe following k » 30 was PB,500,000, fie cash balance per hock on June J} P : i oil of 1 000,000 that was placed in the bank's nj cht Sune 30 did not appeae’ ‘on the bank statersent, june 30 the bank collecteg depository on he oad The bank statement ae ed the proce: as 0f7950,000t0 the note for the entity am aa ant evo collection chaxpe P50, 000. ; Cheeks outstanding on June 30-ameunted £9 300,000 inchiding certified check of P100,000. ; “The entity discovered theta check written in June for P200,000 in had been recorded in the entity’s secords ws P20,006. , Included with the June bank statement was NSF check for P250,000 zeseived from 2 customer on Jume 26. The bank statement showed a P20,000 service charge for June, ‘What amowit should be zeported as cash in bank on June 30? a. 9,000,600 b. 8,360,000 ¢. 9,360,000 d. 9,180,000 What is the balance per bank statement on June 30? a 8,300,000 b. 9,700,000 ©, 8,660,000 a, 8,200,000 What is the net adjustment to cash in bank on June 307° 3, Netdebit psa, b. Neteralit 430,000 ©. Netdebit —-P500,000 4. Netdebit - PB60.000 174 Scanned with CamScannerff" 15-8 ~ yostion I Answer q aianee per book ke e collected by bank ott! xersor (200,000 _ ise check 20,000) ‘ se svict charge pajosted bock balance question 2 Answer d patarice, per bank SQUEEZE) sit in transit yistanding checks (200,009 ~ 100,000 certified check adjusted bank balance Question 3 Answer c Cash in bank Service charge Note receivable Accounts payable Accounts receivable Service charge Cash in bank 8,500,000 950,000, 9,450,000 (180,000) ( 250,000) (20,099) 9,000,000 8,200,000 1,000,000 200,000) 9,020,000 950,000 50,000 180,060 250,000 20,000 ‘ * 450,000 Thetwo entries can be compounded and the net effect isa debit to cash in bank of P500,000. 175 Scanned with CamScanner_ Problent 15-9 (PHULCPA Adapted) An - h “ wit. ee pany keptoll exch inachecking #00" of the Soe remedt for the month of December revealed a statement balance of 'P8,470,000. ed in the bank's night depository of P950,000 plac eee on A deposit December 29 does not appear on the amount fo P270,000, Checks outstanvting on December 31 ‘The bank statement showed that an December 25 the bai collortedg for Boracay Company and credited the proceeds OFP935,000 1g the entity's account which included P35,000 interest. Boracay Company discovered that a check written in December for - 183,000 in payment ofan account had been recorded as P138,009, Included with the December 31 bank statement was ait NSF check for >) P250,000 that Boracay Company had received from a customer on ‘December 20. . The bank statement showed a P15,000 service change for December, 1. Whatis the adjusted cash in bank on December 317 a. 9,150,000 b. 9,240,000 ©. 9,195,000 d. 9,215,000 2. What is the unadjusted balance per book on December 317 a, 8,480,000 b. 8,525,000 ©. 8,435,000 7 d. 8,510,000 Me What isthe net adjustment to cash in bank on December 317 & Netdebit 935,000 b. Neteredit 310,000 c. Netdebit| itl 15-9 estion 1 Answer q ss! nce per Dank gosit in transit ; oeks outstanding 8,470,000 950,000 i gusted bank halance (270,000) gstion 2 Answer b 2,150,000 gatance per book (SQUER: Note collected by bank for Pay sit 8,525,000 sero in eording check 183,000 15 935,000 gf chee 000 - 138,000) ¢ 45,000) gervice charge (250,000) adjusted book balance 15,000) ; 34150,000 Question 3 Answer Cash in bank mics service charge *se00 Note receivable . 950,000 ‘Agcounts payable i 45,000 Accounts receivable 250,000 Service charge : 15,000 Cash in bank 310,000 : tie 7 Thetwo entries can be compounded and the net effect isa debit to cash in bank of P625,000. 177 Scanned with CamScanner"A Adapted) 15-10 (ATCT at the City Bank, Problem hocking account ro iftains a chee ah canceled checks on Peart Conspany meter ent along, with cance ae BF A i oe ae Path ‘The July bank statement incl c followin, 4 fay of each . infomation: 550.0% Balances, July 1 1,800,009 Deposits 1,400,099 Checks processed 30,9) Service charge 120,00), NSF check ih 1004 tc by bank from acco! Ms Monthly foan payment deducted : it ing totaled P100,000 and ali checks written by the ria by the bank except for check of P150,000, A P200,000 July deposit from a credit custorser Was recorded ag P 20,006 debit to cash and credit to accounts receivable, Accheck correctly recorded by the entity as P36,000 disbursement _ was incorrectly processed by the bank as P300,000 disbursement, 1: What is the balance per bank on July 31? a. 700,000 [ tj b. 550,000 ¢. 800,000 d. 950,000 2. What is the adjusted cash in bank on July 31? &. 650,000 . 5. 920,000 § ¢c. 380,000 4. 970,000 <4 ‘Whats to cash in bank balance per ledger on July 312 a. 1,350,000 : b. 1,170,000 7 & 990,000 / d 890,000 f ia Scanned with CamScannersof 1510 7 oes wt per bank ~ July 1 on | Answer g oeks * rosessed owe joo charge nt clock jonthiy Fo Bayne palates PF Sank ~July 3) econ 2 Answer galance pat bank ~ July 3} it in transit outstanding check pank errer ~ overstatement of disbursement Adjusted bank balavee Comect amount tof disbursement Recorded by bank Bank error ~ overstatement of disbursement Question 3 Answer e Balance per tedger ~; July 31 (SQUEEZE) Service charge NSF check Monthly loan payment Book error ~ understatement of collection Adjusted book balaace Correct amount of accounts receivable callected Recorded by depositor Bacic error - understatement of eolestion 179 580,000 1,800,000 (1,400,000) (30,000) (120,000) (100.000) Scanned with CamScannerCHAPTER 16 ONCILIATION roblems BANK RECC Comprehensive P ‘ ted) HELCPA’ Adaptec atid oe ae an prepared the followin bank reconciliation oy ivine Com} oY | December 31: 2.800 Bslance per bank statement 195,000 i Add: Deposit in transit 5,000 Checkbook printing charge i Error made by Divine in recording, 35,000 check issued in December 110000 7 NSF check © // pula 445.000 coe 3,145,009 Less: Outstanding heck aaa 190,000 : Note collected by including 15,000 interest (/ 215,000 315,000 Balance per book 28804009 The entity had cash on hand P500,000 and petty cash fund P50,009 on December 31. 1, What amount should be reported as cash in bank at year-end? a. 2,930,000 b. 3,095,000 c. 2,895,000 4. 3,130,000 2: ‘What total amount of eash should be reported at year-end? a 3,395,000 5. 3,350,000 © 3,445,000 4. 3,380,000 12a Scanned with CamScanner| oo" 168 . sion t Answer ¢ ance PEP bank Pept in transit 0 standing check aajosted cash in bank gatance Per book ote collected by dank nsF gheek ook error checkbook printing charge Adjnsted cash In bank question 2 Answer ec Adjusted cash in bank Cash on hand petty cash fund ‘otal cash 181 2,800,000 195,000 (__190,000) 2,895,000 2,830,000 215,000 (110,000) { 35,000) £5,000) 2,895,000 2,895,000 $00,000 50,000 3,445,000 Scanned with CamScannerProblem 16-2 (IAA) ston Company provided he following date for the month of Faruny, 3,130, 009 Balance per book, January 31 ai30) Balance i bank statement, January vv a £00,009 Collections on January 31 but undeposites " the $50,099 NSF check received from a customer ae a - i P 5 with the January bans & 59,009 bank on February $ with um Checks outstanding on January 31 Bank debit memo for safety depasit box rental not : recorded by depositor : : 5,009 A creditor check for P30,000 was incorrectly recorded in the depositor’s hook as 300,000 A customer check for P200,000 was recorded by the depositor as 20,000 The d-susitor neglected to make an entry for a check drawn in payment of an account payable ~ 125,000 What is the adjusted cash in bank on January 317 a 3,130,000 b. 3,500,000 c. 3,400,000 d. 2,950,600 Solution 16-2 Answer ¢ Balance per book ‘ Overstatement of creditor check ee Understatement of customer check 180, NSF check ( pried Bank debit meme for safety denosi : see Unrecorded check OY copani box C 5,000) Adjusted book bal £125,000) gure 3,400,000 Balance per bank Lapa: Undeposited collections} J 3,500,000 Checks outstanding ie 556,000 Adjusted bank balance £50,000 . 3,400,000 182 Scanned with CamScannersonciling the cash : i" balance oq passe Cont ect ia ‘ote ee “I *tatement "following information: te eee randing checks 4,090,000 i¢ in transit 2,700,000 joe charge 600,000 $e ceds of bank loan, Doce 475000 discounted for 6 months mt if é recorded on Sam Company's %, not customer check charged bag wae : 940,000, for absence of counter signaty k it of P100,000 incorrectly abd $0,000 check of Sim Company charged pies bankas 19,000 sgainst Sam account 008 customer note collected by bank in favor of Sam Com 150,000 Face : peak oo Interest 0,000 Tonal = 440,000 Collection fee $000 438,000 Erroneous debit memo of December 28, to charge Sam account with settlement of bank loan 200,000 Deposit of Sim Company credited to Sam account 300,000 What s the adjusted cash in bank on December 31? “a 4,315,000 b, 3,925,000 ¢, 3,075,000 /d,” 4,015,000 183 Scanned with CamScannerSolittion 16-3 Answer d Balance per book ‘Add: Proceeds of bank loan Customer note cottected by bank Total Less: Service charge Customer cheek charged back Adjusted book balance Balance per benk Add: Deposit in transit Incorrect deposit Erroneous bank charge Erroneous debit memo Total Less: Outstanding checks Erroneous bank credit Adjusted bank balance 2,700, 940,000 "0 435,000 rr. Sy 10,000 069 50,000 — OL 0.0% 4,915,004 = 4,000,009 475,000 90,000 150,000 200,060 ast 925,000 660,000 300,000 2000 200,000 - 4015, —=— 13,000 Scanned with CamScanneryom 16-4 (TAA) Company showed ihe follow in 5 pnt of cash in bank Account 8 Information on August 31: Weapte of bank Statement 1,300,000 MH gganding checks, Auguss 4), 1,200,000 ov gumbor - : : 19,000 762 55,000 763 - 40,000 164 25,000 16S payee 10 ceipts of August 31, deposited ‘ “te charge for August eptember | ms000 xsF check received from a customer 85,000 coshicr-bookkeeper had misappropriated P30,000 and an soa P10,000 by charging sales discounts and eediting accounts pessvable. fps? qhestub for check number 765 and the invoice relating thereto showed . it was for P50,000. It was recorded incorrectly in the cash gigbursements journal as P70,000. : rhiseheck was drawn in payment ofan aceount payable which was drawn in thas been stopped on check number 555 reyment ofan aecount sya . The payee cannot be located. whats the adjusted cash in bank on August 317 a 1,240,000 —- -b, 1,230,000 oe. 1,210,000. d 1,200,000 185 Scanned with CamScannerSolution 16-4 Answer a : 1,300, Balen per rement of check number 765 20,000 00 88 eveck number 555 stopped for payment 10,000 __ 30,09 Tora! 1.30,00¢ Tot ice change $000 330,004 NSF ebeek 35,000 __90.009 Adjusted book balance 1,249,009 Balance per bank 1,200, ia Add: Undteposited collections 275,000 Total 1,475, Less; Outstanding checks: ane Number oe 55,000 163 23,00 764 65,000 165 53,000 23 Adjusted bank balance ” me : 1,240,000 Scanned with CamScannerpalasse® PEF BccCoUNting o& pelance er bank state nt 1,719,000 Fe ne isa A of 10,000 ie bank; the charge hang es delivered he soconiting recond Teeorded.in ing, checks, lee : rte os tarty keaton So 10 ee enti 30, not recorded in the ean ae Ret of interest of 39,000 $70,000 issory note, principal 00,00 clei yt ats up in the accounting record with interest 810,000 peck No. 1086 iastied to a supplicr entered inthe sccounting record as P210,000 but deducted inthe =” bank sistement af an erroneous amount of 120,000 olen check lacking an euthorized signature deducted from Mebride's account by the bank in eror 80,000 somer check retumed by the bank marked NSF, indicating that the customer balance was not sdequate to cover the check; no entry has been made in the accounting record to record the returned check Whats the adjusted cash in bank? t, 3,000,000 , 2,916,000 ¢, .3,080,000 4, 2,990,000 T1000 187 Scanned with CamScannerSolution 16-5 Answer @ Balance per book Service change Debit meme for printed checks Proceeds of bank loan Proceeds of customer note NSF customer check Adjusted book balance Balance per bank Outstanding checks Deposit in transit Bank error in recording check Stolen check deducted by bank in error Adjusted bank balance Scanned with CamScannerff no Prepared the flon oe "Ng bunic reconciliation on palance : peposit in transit pe Collection of note 750,000 ie jngerest ow note | ) 2,500,000 ~150,000 3400000 “, : 4,205,000 . Careless Company deposi : fo OUF account ie ‘recited tk service A 1,100,000 Bar change |) 45000 1,145,000 jose book balance gana jk balence ‘sean Mt Epror by depositor on tesonding check |) 0-7 85,004 wt ; =i : 5,675,000 ess: Preauthorized payments for Wutde bits 205,000 NSF customer check /j77 220,000 Outsandingshesks 4am 0100 gjnted bank balance 2s itwas amount of P249,000 in payment of account: However} raed the cash payment journal as 294,000. “theentity authorized the bank toautoratically py its water billsas submitted directly to the bank. amount should be epordncashnbankconMS7 4 3,660,000 », 3,600,000 ¢, 3,630,000 4 2,880,000 189 Scanned with CamScannerSolution 16-6 Answere s 1,405, Book balance a Collection of note . 2,500,009 Interest on note 150,009 Book error on recording check (294,000 - 249,000) 45,009 Bank service charge ( 45.000) * Water bills paid directly by bank ( 205,000) NSF customer check : . + © 220,609) ———)) Adjusted book balance 3,630,009 =a Bank balance 5,630,009 Deposit in transit 750,000 Outstanding checks (1,650,009) Bank error ~ Careless Company deposit erroneously credited (2,100,000) . (0,100,000) Adjusted bank balance 3,630,000 ) Scanned with CamScannerCHAPTER 17 pROOF Or CASH protien IT-A(AICPA Adapteg ‘ompany had pa ba ——- ‘bank reconciliation on June 30: Baresi in transit ent, June 30 an Haeanding checks a oagae oO) lance per book, June 39 2,506, 000 ar ep es Lelie Deposits, inc! ling P200,000 note collected for Lazer 97300,000 Deprsements, ic ald P140,000N Die 0,060 service ceaee NSF customer check 71900,000 somtimes , The oasaingcects totaled P6O0, 000 and the deposit in transit amounted to P1,000, on July 31. 1. Whatisthe' cash in bank on July 317 a. 2,500 i 3A ON 4, $0,000 38 balance pr book on Fly 31 i : é B88 BP oP PUM ae S| Wi s s of cash receipts per bookin July? gerrhs a fh nn i cash disborements pe book in JU? ee ie 198 Scanned with CamScannerSolution 17-1 Question [| Answer b~ Balance per bank ~ June 30 July vank deposits duly bank disbursements Balance per bank ae 3 July deposit in transi uty oustanding checks Adjusted bank balance Question 2 Answer b+ Balance per book ~ July 31 (SQUEEZE) Note collected by bank in July NSF customer check in July Service charge in July Adjusted book balance The balance per book on July 31 is “squeezed” by working back fiom the adjusted Question 3 Answer a Deposits per bank statement for duly Note collected by bank in July Deposit in transit ~ June 30 Deposit in transit ~ July 31 Cash receipts per book for July Question 4 Answer a Disbursements per bank stateme: NSF check in ily ment for fuly Service charge in July Outstanding checks ~ June 30 Outstanding checks — Suly 31 Cash ditbursements Pet book for July Proof of the cash balance per book ~ duly 31 Balance per book ~ j Book tecsipts for uly ee ook disbursements for July Balance Ber book — July 31 A92 son 6550.00 5,350,000 Scanned with CamScannerproblem AP2 (Alcp, ‘A Ag is Company jy cra of November, “4 jance per bank staten, Adds Deposis in transit" November 30 3,600,000 "300,000 , Outstandi 0 Loss? c Ng Checks 4,400,000 Bank credit "corded in on 4,200,000 460, galance pct book, November 3g —— i 3,000,000 iT Data per Dank statement for the Month of December follow: pecember deposits, inclugi : collected of PI 000,000 £22 mber disbursements, including NSF customer check." 350,000 and service charge PS0,000 er kaon Allitems that were outstandin 7 fino gan ttt in addition, checks amounti i Iaosita of P700,000 neo 2500,000 were -Quistanding and 1}, Whatis the adjusted cash in bank on December 31? 4,700,000 neon 5 3 Bee Bhs 22 38 2 Ss ES balance per ledger on December 31? ae op PPS 2 33 e amount of cash receipts per book in December? S32 33 Boe 23 3 S a3 an ofeash disbursements perbonkin Deon? 3e 2 BP oP 193 Scanned with CamScannerSolution 17-2 1 December disbursements ar Batsnce per bank — Decene : it in transit ~ Perecember Outstanding checks ~ fe Adjusted bank balance ~ Decem! tion 2 Answer d oareee por book - December 31 (SQUEEZE) Note cotlected by bank NSF customer check Service charge Adjusted book balance Question 3 Answer & December bank deposits Note collected by bank in December Deposit in transit ~ November 30 Deposit in transit - December 31 December book receipts Question 4 Answer ¢ December bank disbursements NSE check in December tvice charge in Decenaber pistanding checks = November 30 Erroiteous bank credit in November Outstanding checks - December 31 Deceinber book Gisbursements eit Proof of cash balance ber heok — December 31 Balance per book - November 30 December book December book digs : Balance per book ~ December 31 194 Scanned with CamScannerprodlers IT-S(AICRA noe per bank ees in transit posssending checks eae per book were total deposits of See 00.0 fo ly pean gem er ne 3 30 cleared the bank on July All reconciliation items on checks outstanding amounted Od Pa £200,000 on July 31, ee ounted to P1 000,000 and depenits in transit 1, Whetisthe amount 6,500,000 of cash receipts per book in ly? §. 730,000 ¢. 5,700,000 &. 7,900,000 2 (What is the amount of eash disbomvements per book in July? a 8,600,000 b. 7,606,000 c. 9,400,000 d. 8,400,000 3. wart jet coh nbn oo731? 2. 7,300,000 b. 6,300,000 «. 7,900, 6,500,000 4, hat the eah lance pereageren 37317 a. 8,800,000 be, 8,500,000 6 6,300,000 d._ 7,500,000 195 Scanned with CamScannerSolution 17 Question 1 Ancwer s Rant receipts for Paty Deponite in traneit - Fame ” Deporits in transit ~ Joly 31 Rook receipts in July Question 2 Answer a Raek disbarvements for July Ovtstanding checks — June 30 Ovtsinnding checks ~July 31 Book disbursements for July Question 3 Answer ¢ Balance per bank — June 30 Bank receipts for July Bank disbursements for July ~ Balence per bank ~ July 31 Deposits in transit - July 31 Outstanding checks ~ July 31 Adjusted bank balance ~ July 31 Question 4 Answer d Balance per book ~ June 30 Book receipts for July Book disbursements for July Balance per book ~ July 31 9,008,000 (1,400,000) 1,900,000 8,600,000 9,800,000 6,500,000 9,000,000) 7,300,000 1,206,000 1,000,000) 7,500,000 Scanned with CamScannerplem 17-4 (AICPA Ada xd pte company had the or follow sithinene tiation on Mares 31: ance POr bank stat : ais peposits in transix +s March 34 eat! ‘ yess! Outstanding checks palane® per book, Mareh 3} 4,650,000 1,030,900 5,680,000 1,260,000 pataper bank statement forthe month of Apri sits pisbursements 3,840,000 4,970,000 reconciliatis all jon items on March 31 cleared through the bank in Apr checks on April 30 totaled P700,000 and there were m0 deposits in transit on April 30, What is the cash balance per book on April 30? 2. 4,820,000 : $5,290,000 c, 5,520,000 4. 3,850,000 Solution 17-4 Answer & Balance per bank ~ March 31 4,650,000 Bank deposits ~April 3,840,000 Bank disbursements ~ April (4,970,000) Balance per bank ~ April 30 $,520,000 Outstanding checks ~ Apri 30 (100,000) Adjusted cash in bank ~ April 30 4,820,000 Fusted cash i April 30 js.also the cash balance Per ee me in he are no book reconciliag items. 197 Scanned with CamScanner17-4 ple ni A Ad Company had the fy oe Now ti jase per bank stats Peon pxpepoeite i trang * Math 24 en March 31 qo! 4,630,000 ss! Outstanding check 1,039,000 " 5,080,000 pele per book, March 3} 1 360,000 sage pataper bank statement forthe mon sits Of April pisbursements 5,840,000 iNinti 4,970,000 sovvilation’ [ ems on March 31 cleared through the bark in Apel Outstanding checks on Apri 0 rele Whats the cash balance per book on April 30? 2. 4,820,000 b. 5,290,000 ¢. 5,520,000 4. 5,850,000 Solution 17-4 Answer & Balance per bank ~ March 3! 4,650,000 Benk deposits ~ April 3,840,000 Bank disbursements ~ At 1 (4,970,000) Bolance per bank ~ April 30 5,520,000 Outstanding checks ~ April 30 (100,000) Adjusted cash in bank - April 30 4,820,000 : i nA 41.30 is also the cash balance per Teste he oe care nio book reconciliag Hers. 197 ___ Scanned with CamScannerplem 17-4 (AICPA . Adapteaty po company had the falling pale’ per bank statement te nad: Meposite in tennsit 1 ws Outstanding checks qxnnve Ber DOOK, March 3 pata per bank statement for the sits pisbursements ) Mares 9} Cone FRation ony Mirch 31 4,650,000 1,029,000 5,680,000 1,260,000 Of April: 5,840,000 4,970,000 station aiireconcilistion items on March 31 cleared through the bank in Agel. outstanding checks on April 30 totaled P700,000 and there were no deposits in transit on April 30, What is the cash balance per book on 2 4,820,000 b. 5,290,000 ¢, §,520,000 4. 5,850,000 Solution 17-4 Answer @ Balance per bank ~ March 31 Bank deposits — April Bank disbursements ~ April Balance per bank ~ April 30 Outstanding checks ~ April 30 Adjusted cash in bank April 30 Theadjusted cash in bank on April book on April 30 because there are 197 April 30? 4,650,000 3,840,000 (4,970,000) $,520,000 (40,000) 4,820,000 (is also the cash balance per no book reconciling items. Scanned with CamScanner —ed) a 5 ( tank reconciliation on May 31, en ca 2,100,000 oT bank atatementt 306,009 Balnes Ceni (30,000) Cheeks outstanding 2,370, 00) Correct cash balsnce Fae Balance per hook ( __2,800) Bank service change 2,370,000 Correct ensh balance Sao the month of June: ee . Bank Book ded 2,300,000 2,360,060 tae 1,620,000 1,800,000 Collection by bank, P400,000 note + plus interest 420,000 " NSF check returned with June 30 statement 10,000 Balances 1,830,000 1,819,000 1, Whatis the amount of checks outstanding on June 30? a. 30,000 b. 90,000 ¢. 60,000 a. 0 : 2. What is the amount of deposits in transit on June 30? & 480,000.- ‘b. 120,000 ©. 180,000 . 680,000 3. ‘What isthe adjusted cash in bank on June 30? & 1,810,000 b. 2,220,000 & 2,240,000 4. 2,780,000 Scanned with CamScannergl ation 17-8 S ston 1 Answer b : pe xg outstanding .. oH 8 ~ May cosets recorded by book in dg pl reeks recorded by bank in June chee outstanding ~ Jung 39 gstion 2 Answer a sits in transit - May 31 peposits recorded by book ~ June : 300,000 rot . 1,800,000 peposits recorded by bank — June ne be ‘peposits in transit ~ June 30 aa question 3 Answer b ‘ Balance per bank — June 30 1,830,000 Deposits in transit ~ June 30 480,000 Outstanding checks ~ June 30 (90,000) Adjusted bank balance 2,220,000 Balance per book 1,819,000 Note collected by bank: 420,000 _NSF check vs t0,000) Adjusted book balance 2,220,000 199 Scanned with CamScanner