Pamantasan ng Cabuyao

Katapatan Homes Subdivision. Brgy. Banay- Banay, City of Cabuyao

Intermediate Accounting Part 1
Bank Reconciliation

Assignment No. 2

Name: Score:
Course & Section: Date:

Problem 1:

In preparing the bank reconciliation on December 31, 2021, Case Company provided the following data:

Balance per Bank Statement 3,800,000

Deposit in transit 520,000
Amount erroneously credited by bank to Case’s account 40,000
Bank service charge for December 5,000
Outstanding checks 675,000

What is the adjusted cash in bank on December 31, 2021?

Problem 2

Core Company provided the following data for the purpose of reconciling the cash balance per book with
the balance per bank statement on December 31, 2021:

Balance per bank statement 2,000,000

Outstanding checks (including certified check of Php 100,000) 500,000

Deposit in transit 200,000

December NSF checks (of which Php 50,000 had

Been redeposited and cleared by December 27) 150,000

Erroneous credit to Core’s account, representing

Proceeds of loan granted to another company 300,000

Proceeds of note collected by bank for Core,

net of service charge of Php 20,000 750,000

What amount should be reported as cash in bank on December 31, 2021?

Problem 3

The accountant of Narcisa Co. provided the following data in reconciling the April 30 cash in bank
balance:

Balance per bank, April 30 Php 130,350

Balance per books, April 30 85,000
Bank service charge 2,000
Deposit in transit 49,000
Outstanding checks 17,650
Note collected by bank including Php 11,200
Interest (Narcisa Co. not yet informed) 136,000
Check drawn by XYZ Co, erroneously
Charged by bank to Narcisa’s account 54,600

A transposition error was made in recording a sale and deposit in the sales journal and cash receipts
journal in April.

Correct amount Php 13,658

Recorded as Php 16,358

What is the adjusted cash balance on April 30?

Problem 4

The bank statement for the current account of Ian Co. showed a December 31, 2021, balance of Php
585,284. Information that might be useful in preparing a bank reconciliation is as follows:

a. Outstanding checks were Php 52,810.

b. The December 31, 2021, cash receipts of Php 23,000 were not deposited in the bank until January
2, 2022.
c. One check written in payment of rent Php 8,940 was correctly recorded by the bank but was
recorded by Ian Co. as a Php 9,840 disbursement.
d. In accordance with prior authorization, the bank withdrew Php 18,000 directly from the current
account as payment on a mortgage note payable. The interest portion of that payment was Php
14,000. Ian Co. had made no entry to record the automatic payment.
e. Bank service charge of Php 740 were listed on the bank statement.
f. A deposit of Php 35,000 was recorded by the bank on December 12, but it did not belong to Ian
Co.
g. The bank statement included a charge of Php 3,400 for a not- sufficient- fund check. The
company will seek payment from the customer.
h. Ian Co. maintains an Php 8,000 petty cash fund that was appropriately reimbursed at the end of
December.
i. According to instructions from Ian Co. on December 30, the ban withdrew Php 40,000 from the
account and purchased Treasury bills for Ian Co. The company recorded the transaction in its
 books on December 31 when it received notice form the bank. Half of the treasury bills mature in
three months and the other half in six months.

1. What is the cash in bank per books on December 31, 2021?

2. What is the adjusted cash in bank balance on December 31, 2021?
3. What amount would Ian Co. report as cash and cash equivalents in the current asset section of
the December 31, 2021, statement of financial position?

Problem 5

The following data were taken form Garay’s check register for the month of April. Garay’s bank
reconciliation for March showed one outstanding check, check no. 178 for Php 2,150 (written on March
20), and one deposit in transit for Php 4,350 (made on March 31).

Date Item Checks Deposits Balance

2021

April 1 Beginning balance Php 6,150

1 Deposit 26,167 32,317
1 Check No. 179 250 32,567
4 Check No. 180 10,673 21,898
27 Deposit 11,774 33,672
29 Check No. 181 13,217 20,490

The following is from Garay’s bank statement for April:

Date Item Checks Deposits Balance

2021

April 1 Beginning Balance Php 3,950

3 Check No. 179 250 3,700
3 Deposit 4,350 8.050
5 Check No. 180 10.673 (2,623)
5 Automatic Loan 8,150 5,527
5 Deposit 26,417 31,944
20 NSF Check 1,000 30,944
20 Service Charge 600 30,344
30 Interest 82 30,426

Assume that any errors or discrepancies you find are Garay’s, not the bank’s.

What is the adjusted cash balance as of April 30?

Problem 6

The following information pertains to Flint Corp.:

Flint Corp,
BANK RECONCILIATION
November 30, 2021

Balance per bank statement Php 435,000

Less: Outstanding checks
No. 4321 6,000
4329 15,000
4340 1,700
4341 4,675 27,375
Php 407,625
Add: Deposit in transit 16,200

Balance per books Php 423,825

CHECK REGISTER
December 2021

Vouchers
Date Payee No. Payable Discount Cash

Dec. 1 San Beda, Inc. 4342 Php 10,000 Php 500 Php 9,500
3 Miriam Corp. 4343 4,200 - 4,200
7 UE Enterprises 4344 3,755 - 3,755
12 PSBA Corp. 4345 12,000 120 11,880
15 Payroll 4346 96,000 - 96,000
16 BU, Inc. 4347 6,300 - 6,300
18 New Era Co. 4348 14,200 142 14,058
21 UST, Inc. 4349 7,000 - 7,000
22 Petty cash fund 4350 10,000 - 10,000
28 Payroll 4351 98,000 - 98,000
Php 261,455 Php 762 Php 260,693

BANK STATEMENT
BANKABLE BANK
PERIOD: NOVEMBER 30, 2021- DECEMBER 31, 2021
No.: 001-43-44

Check
Date Description Number Debit Credit Balance
Balance last statement Php 435,000
Dec. 1 Cash deposit Php 16,200 451,200
 1 Check issued 4329 Php 15,000 436,200
4 Check issued 4342 9,500 426,700
4 Check issued 4341 4,675 422,025
5 Check deposit 49,000 471,025
6 Check issued 4343 4,200 466,825
8 Check deposit 14,000 480,825
10 Check issued 4344 3,755 477,070
15 Encashment 4346 96,000 381,070
22 Encashment 4350 10,000 371,070
28 Encashment 4351 98,000 273,070
29 Debit memo-
Service charge 1,000 272,070
29 Credit memo-
Interest 1,550 273,620

Deposit in transit at December 31 totaled Php 49,000.

1. What is the total book receipts for December?

2. What is the cash balance per books on December 31, 2021?
3. What is the total outstanding checks on December 31, 2021?
4. What is the adjusted cash balance on November 30, 2021?
5. What is the adjusted cash balance on December 31, 2021?

Problem 7

Junie Corp. disclosed the following information:

1. Cash in bank balance per books, December 2021 Php 35,000

2. Bank statement balance, December 31, 2021 60,000

3. Note collected by bank in December (principal plus

Interest of Php 800, less collection fee of Php 200) 27,600

4. Debit memo for a checkbook ?

5. Deposit in transit, December 31, 2021 15,200

6. Transposition error made by bank

In recording deposit of December 28:
Correct Amount Php 45,000
Recorded as 54,000 9,000

7. Erroneous bank debit 26,700

 8. Included in the Cash in Bank account is petty cash fund
Of Php 10,000. Your count on December 31, 2021
Revealed the following fund items:
Currency and coins 3,000
Supplies 2,400
Transportation 100
IOUs 4,000 9,500

9. Erroneous bank credit 11,000

10. Outstanding checks (including a certified

Check of Php 10,000) 39,400

Questions:

a. What is the principal amount of the note collected by bank December?

b. What is the adjusted cash in bank at December 31, 2021?
c. The cost of checkbook is?
d. What is the amount of petty cash shortage at December 31, 2021?
e. What is the adjusted petty cash balance?

Problem 8

ABC Company provided the following information on December 31, 2021:

Balance per book 6,776,000

Balance per bank statement 6,532,000
Deposit in bank closed by BSP 1,600,000
Deposit in transit 1,234,000
Outstanding checks 987,000
Currency and coins counted 950,000
Petty cash fund (of which Php 10,000 is in the form of
Paid vouchers) 50,000
Bank service charge not yet taken up in the book 6,000
Bond sinking fund 1,000,000
Receivables from employees 70,000
Error in recording a check in the book. The correct
Amount as paid by the bank is Php 89,000 instead
Of Php 98,000 as recorded in the book, or a difference
Of 9,000

What total amount of cash should be reported as current asset on December 31, 2021?
Problem 9

Susan Company showed the following information on August 31, 2021:

Balance of cash in bank account 1,300,000

Balance of bank statement 1,200,000
Outstanding checks, August 31:
No. 555 10,000
761 55,000
762 40,000
763 25,000
764 65,000
765 70,000
Receipts of August 31, deposited September 1 275,000
Service charge for August 5,000
NSFF check received from a customer 85,000

The cashier- bookkeeper had misappropriated Php 30,000 and an additional Php 10,000 by charging sales
discounts and crediting accounts receivable. The stub for check number 765 and the invoice relating
thereto show that it was for Php 50,000. It was recorded incorrectly in the cash disbursements journal as
Php 70,000. This check was drawn in payment of an account payable. Payment has been stopped on
check number 555 which was drawn in payment of am account payable. The payee cannot be located.

What is the adjusted cash in bank on August 31, 2021?

Problem 10

On June 30, 2021, the bank statement of Bougainvilla Company had an ending balance of Php 3,735,000.
The following data were assembled in the course of reconciling the bank balance:

 The bank erroneously credited Bougainvilla Company for Php 21,000 on June 22.
 During the month, the bank charged back NSF checks amounting to Php 23,000 of which Php
8,000 had been redeposited by June 25.
 Collection for June 30 totaling Php 103,000 was deposited the following month.
 Checks outstanding on June 30 amounted to Php 302,000.
 Note collected by the bank for Bougainvilla Company was Php 80,000 and the corresponding
bank charge was Php 5,000.

What is the unadjusted cash in bank per ledger on June 30, 2021?