1. The document provides details on reconciling the cash account of Bobby Company for August 31 and September 30. It includes bank balances, book balances, deposits in transit, outstanding checks, bank charges and collections not recorded in the books. Adjusting entries need to be prepared.
2. Information is given on reconciling cash balances for November 30 and December 31 for a company. Adjusting entries are required for reconciling deposits in transit, outstanding checks, NSF checks, notes collected by bank, bank charges and erroneous bank entries.
3. Cash balances are provided to reconcile Solo Company's cash in bank for July. Adjusting entries are needed to reconcile book debits, credits and bank statement balances including outstanding
1. The document provides details on reconciling the cash account of Bobby Company for August 31 and September 30. It includes bank balances, book balances, deposits in transit, outstanding checks, bank charges and collections not recorded in the books. Adjusting entries need to be prepared.
2. Information is given on reconciling cash balances for November 30 and December 31 for a company. Adjusting entries are required for reconciling deposits in transit, outstanding checks, NSF checks, notes collected by bank, bank charges and erroneous bank entries.
3. Cash balances are provided to reconcile Solo Company's cash in bank for July. Adjusting entries are needed to reconcile book debits, credits and bank statement balances including outstanding
1. The document provides details on reconciling the cash account of Bobby Company for August 31 and September 30. It includes bank balances, book balances, deposits in transit, outstanding checks, bank charges and collections not recorded in the books. Adjusting entries need to be prepared.
2. Information is given on reconciling cash balances for November 30 and December 31 for a company. Adjusting entries are required for reconciling deposits in transit, outstanding checks, NSF checks, notes collected by bank, bank charges and erroneous bank entries.
3. Cash balances are provided to reconcile Solo Company's cash in bank for July. Adjusting entries are needed to reconcile book debits, credits and bank statement balances including outstanding
1. The document provides details on reconciling the cash account of Bobby Company for August 31 and September 30. It includes bank balances, book balances, deposits in transit, outstanding checks, bank charges and collections not recorded in the books. Adjusting entries need to be prepared.
2. Information is given on reconciling cash balances for November 30 and December 31 for a company. Adjusting entries are required for reconciling deposits in transit, outstanding checks, NSF checks, notes collected by bank, bank charges and erroneous bank entries.
3. Cash balances are provided to reconcile Solo Company's cash in bank for July. Adjusting entries are needed to reconcile book debits, credits and bank statement balances including outstanding
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Audit of Cash and Cash Equivalents
1. In your audit of the cash account of Bobby Company, you obtained
the following balances: August 31 September 30 a. Balances per bank P14,010 P19,630 b. Balances per books 13,290 18,195 c. Deposits in transit 2,740 3,110 d. Outstanding checks 4,260 3,870 e. Bank collections, not in books 1,200 1,600 f. Bank charges, not in books 950 640 g. Of the outstanding checks on September 30, one check for P700 was certified at the request of the payee. h. Receipts for September, per bank statement - P281,070. i. September disbursements, per cash journal - P274,635. j. NSF check from customer was charged by the bank on September 28 and has not been recorded - P800. k. NSF check returned in August and recorded in September - P900. l. NSF check returned and recorded in September - P900. m. Check of Bobbie Company charged by the bank in error - P2,010. n. Receipts on September 6 paid out in cash for travel expenses - P750. o. Error in recording customer's check on September 20 - P165 instead of P465. p. Error in disbursements journal for September - P3,250 instead of P325.
You noted in your audit that the NSF checks returned by the bank are recorded as a reduction in the cash receipts journal instead of recording them in the cash disbursements journal, redeposits are recorded as regular cash receipts.
Required: Prepare a four-column reconciliation of receipts, disbursements, and balances using the adjusted balance method and to submit adjusting journal entries as of September 30, 2021.
2. The following information is available:
November 30 December 31 Deposit in transit P 10,400 P ? Outstanding checks 16,014 ? NSF checks 1,052 1,400 Customers' notes collected by bank 3,000 8,554 Bank service charges 100 130 Erroneous bank debits 1,200 1,800 Erroneous bank credits 2,000 6,000
a. Prepare a four-column reconciliation that would end at
adjusted balances. b. Adjusting journal entries as of December 31, 2021.
3. In reconciling the cash in bank account of Solo Company with the
bank statement for the month of July 2021, the following data are summarized: Cash in bank: Balance, June 30 P1,000,000 Book debits for July including June CM for note collected, P300,000 4,000,000 Book credits for July including June NSF of P100,000 and service charge of P4,000 3,600,000
Bank statement for July:
Balance, June 30 P1,650,000 Bank debits for July including service charge of P1,000 and June outstanding checks of P854,000 2,500,000 Bank credits for July including CM for bank loan of P500,000 and June deposit in transit of P400,000 3,500,000
Required: Prepare a four-column bank reconciliation showing the adjusted method.
4. On October 7, 2021, the cash book of Uno Company showed the
following entries: Receipts Checks September 30 (Overdraft) P 0 P5,000 October 1 Tuesday 1,200 1,600 2 Wednesday 3,000 2,400 3 Thursday 800 1,200 4 Friday 6,000 3,400 5 Saturday 4,000 2,500
Cash receipts are deposited at the beginning of every Monday,
Wednesday and Friday and in each case includes the receipts of the preceding two working days. The bank statement data at the close of October 5 showed:
Balance, September 30 - Overdraft P6,500
Deposits 7,000 Checks (includes all checks issued prior to October 4 and also a check for P300 belonging to Uni Company erroneously charged to Uno Company account) 5,800 A check for P256 issued on October 5 had been cancelled by the company but the bookkeeper has not made any entry on this.
Required:
a. The book balance as at October 5, 2021
b. The bank balance as at October 5, 2021 c. The undeposited collection as at September 30, 2021 d. The outstanding checks as at September 30, 2021 e. The adjusted book and bank balances as at October 5, 2021 ANSWERS Cash on hand PCF BPI C & CE Unadjusted balances 372,000 10,000 950,000 3,372,000 Customer's NSF check (60,000) (60,000) Customer's PD check (30,000) (30,000) Employees' vales (1,600) (1,600) Unreplenished PCVs (800) (800) Shortage (900) (900) Undelivered check 50,000 50,000 Postdated check 86,000 86,000 Restricted for new equipment (500,000)
