Problem 1: OP Corporations cash account showed a balance of P173,108 on

March 1, 2020. The bank statement balance for the same date indicate a balance
of P181,123.50. The following additional information is available concerning OP’s
cash balance on March 31, 2020:
1.Undeposited cash on hand on March 31, amounted to P7,245.00.
2.A customer NSF check for P1,738.00 was returned with the bank statement.
3.A note for P20,000 plus interest of P1,000 was collected for OP by bank during
March. The bank notified OP of this collection on the bank statement.
4.The bank service charge for March was P150.
5.A deposit of P9,517.50 mailed to the bank on March 31 did not appear on the
bank statement.
6.The following checks mailed to creditor had not been processed by the bank on
March 31:
#429 P 574.00 #433 P 2,148.00
#432 P 1,475.00 #434 P 1,919.00
7.A customer check for P1,495.00 in payment of his account and listed correctly
for that amount on the bank statement had been incorrectly recorded on the
accounting records as P1,945.00
Required: Prepare a bank reconciliation statement for the March 31, 2020.
Prepare any adjusting entries.
Problem 2: Nabutas Company’s newly hired assistant prepared the following bank
reconciliation on December 31, 2020:
Book Balance P 2,810,000
Add: December 31, deposit in transit P 1,500,000
Collection of Note 5,000,000
Interest on Note 300,000 6,800,000
Total 9,610,000
Less: Nabitas Company’s Deposit P 2,200,000
Bank Service Charge 90,000 2,290,000
Adjusted Book Balance P 7,320,000
Bank Balance P 11,260,000
Add: Error on Check # 193 9,000
Total 11,269,000
Less: Preauthorized payments for water bills P 248,000
NSF Check 440,000
Outstanding Check 3,219,000 3,907,000
Adjusted Bank Balance P 7,362,000
Check #193 was made for the proper amount P489,000 in payment of account.
However it was entered in the cash payments journal as P498,000. Nabutas
authorized the bank to automatically pay its water bill as submitted directly to the
bank.
Required: Prepare the bank reconciliation for the month of December 2020.

Problem 3: The books of Angeles Service, Inc. disclosed a cash balance of P687,570
on December 31, 2020. The bank statement as of December 31, showed a balance
of P547,800. Additional information that might be useful in reconciling the two
balances follows:
 Check #748 for P30,000 was originally recorded on the books for P45,000
 A customer’s note dated September 25 was discounted on October 12. The note
was dishonored on December 29 (maturity date). The bank charged Angeles
account for P142,650, including protest fee of P2,650.
 The deposit on December 24 was recorded on the books as P28,950, but it was
actually a deposit of P27,000.
 Outstanding checks totaled P98,850 as of December 31.
 There were bank service charges for December of P2,100 not yet recorded on the
books.
 Angeles account had been charged on December 26 for a customer NSF check for
P12,960.
 Angeles properly deposited P6,000 on December 3 that was not recorded by
bank.
 Receipts of December 31, for P134,250 were recorded by the bank on January 2.
 A bank memo stated that a customer’s note for P45,000 and interest of P1,650
had been collected on December 27, and the bank charged a P360 collection fee.
Prepare the bank reconciliation statement of Angeles Service, Inc. for the month of
December 2020 and the corresponding adjusting entries to correct the cash
balance.

Problem 4: The following data pertaining to cash transactions and bank account of
Arc Co. for May 2020 are available to you for the preparation of the Bank
Reconciliation Statement:
 Cash balance, per accounting records, May 31 – P17,194
 Cash balance, per bank statement for May – P31,948
 Bank service charge for May – P109
 Debit memo for the cost of printed checks delivered by the bank; charge has not
been recorded in the accounting record – P125
 Outstanding checks for May – P6,728
 Deposit of May 30 not recorded by bank until June 1 – P4,880
 Proceeds of bank loan on May 30, not recorded in the accounting records, net of
interest of P300 – P5,700
 Proceeds from a customer’s promissory note, principal amount P8,000, collected
by bank, taken up in the books only in June with interest – P8,100
 Check No. 1086 issued to a supplier entered in the accounting records as P2,100
but deducted in the bank statement at an erroneous amount of – P1,200
 Stolen check lacking an authorized signature, deducted from Arc’s account by the
bank in error – P800
 Customer’s check returned by the bank marked NSF, indicating that the
customer’s balance was not adequate to cover the check; no entry has been
made in the accounting records to record the returned – P760