Mindanao Company provided the following data for the month of December: *The cash balance per book

per book on June 30 is P8,500,000. A deposit of

Balance per book P1,000,000 that was placed in the bank’s night depository on June 30 does
not appear on the bank statement.
Balance per book 1,000,000
Bank service charges 3,000 *The bank statement shows on June 30, the bank collected note for Aries
Outstanding checks 235,000 and credited the proceeds of P950,000 to the entity’s account. Checks
Deposit in transit 300,000 outstanding on June 30 amount to P3 00,000.
Customer note collected by bank 375,000
Interest on customer note 15,000 *Aries discovered that a check written in June for P200, 000 in payment of an
Customer check returned NSF 62,000 account payable, had been recorded 1n the entity’ s records as P20, 000.
Depositor’s payment of note payable charged to account 250,000 Included with the June bank statement was NSF check for P250,000 that

Sample/practice exam…

Aries had received from a customer on June 26. The bank statement shows a
P20,000 service charge for June. Solution 15-7 Answer b
Balance per bank 2,800,000
What amount should be reported as cash in bank on June 30? Deposits in transit 350,000
a. 9,000,000 c. 9,360,000 Outstanding checks (650,000)
b. 8,300,000 d. 9,180,000 Adjusted bank balance 2,500,000
Balance per ledger (SQUEEZE) 2,520,000
Solution 15-5 Answer a Interest income 10,000
Balance per book 8,500,000 Service charge (12,000)
Note collected by bank 950,000 Book error (64,000-46,000) (18,000)
Total 9,450,000 Adjusted book balance 2,500,000
Bank error (200,000-20,000) (180,000)
NSF check (250,000) Problem 15-8 (IAA)
Service charge (20,000) Letty Company provided the bank for the month of April which included the
Adjusted book balance 9,000,000 following information:
Bank service charge for April 15,000
Problem 15-6 (AICPA Adapted) Check deposited by Letty during April was not collectible,
Able Company received the bank statement for the month of March. and has been marked “NSF” by the bank and returned 40,000
However, the closing balance of the account was unreadable.
Attempts to contact the bank after hours did not secure the desired In comparing the bank statement to its own records, the entity found the
information. following:
February 28 book balance 1,460,000 Deposits made but not yet recorded by bank 130,000
Note collected by bank 100,000 Checks written and mailed but not yet recorded by bank 100,000
Interest earned on note 10,000
NSF check of customer 130,000 A deposit in transit end outstanding checks have been properly recorded in
Bank service charge on NSF check 2,000 the entity’s books.
Other bank service charges 3,000 A customer check for P35,000 payable to Letty Company had not yet been
Outstanding checks 202,000 deposited and had not been recorded by the entity.
Deposit of February 28 placed in night depository 85,000
Check issued by Axle Company charged to Able’s account 20,000 The cash in bank account balance per ledger is P920,000.

What is the cash balance per bank statement? What is the adjusted cash in bank on April 30?
a. 1,435,000 c. 1,338,000 a. 900,000
b. 1,532,000 d. 1,557,000 b. 86,000
c. 930,000
Solution 15-6 Answer b d. 965,000
February 28 book balance 1,460,000
Note collected by bank 100,000 Solution 15-8 Answer a
Interest earned on note 10,000 Balance per ledger 920,000
NSF check (130,000) Unrecorded customer check 35,000
Bank service charges (2,000 + 3,000) (5,000) Bank service charge (15,000)
Adjusted book balance 1,435,000 NSF check (40,000)
Balance per bank statement (SQUEEZE) 1,532,000 Adjusted book balance 900,000
Deposit in transit 85,000
Bank error erroneous charge 20,000 Problem 15-9 (IAA)
Outstanding checks (202,000) Gallant Company showed a cash account balance of P4,500,000 at the
Adjusted bank balance 1,435,000 month-end.

Problem 15-7 (1AA) The bank statement did not include a deposit of P230 000 made on the last
Stellar Company provided the bank statement for the month of December day of the month.
which included the following information:
The bank statement showed a collection by the bank of P94,000 for the
Ending balance, December 31 2,800,000 depositor and a customer check for P32,000 returned because it was NSF.
Bank service charge for December 12,000
Interest paid by bank to Stellar Company for December 10,000 A customer check for P45,000 was recorded by the depositor as P54,000, and
a check written for P79,000 was recorded as P97,000.
In comparing the bank statement to its own cash records, the entity found
the following: What amount should be reported as cash in hank?
a. 4,765,000 c. 4,819,000
Deposits made but not yet recorded by the bank 350,000 b. 4,571,000 d. 4,801,000
Checks written and mailed but not yet recorded by the bank 650,000
Solution 15-9 Answer b
In addition, the entity discovered that it had drawn and erroneously recorded Balance per book 4,500,000
a check for P46,000 that should have been recorded for P64,000. Collection by bank 94,000
NSF customer check (32,000)
What is the cash balance per ledger on December 31? Book error -customer check (54,000-45,000) (9,000)
a. 2,500,000 c. 2,540,000 Book error check written (97,000 -79,000) 18,000
b. 2,520,000 d. 2,800,000 Adjusted book balance 4,571,000