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    Bank Reconciliation Practice Set

    Uploaded by

    Mirella Alminar
    1. Park Company should report cash of $1,400,000 in its December 31, 2006 balance sheet as this reconciles the checkbook balance and items affecting cash such as deposits in transit and outstanding checks. 2. At August 31, 2006, Apex's correct cash balance is $1,980,000 after reconciling the bank statement balance with deposits in transit, returned checks, bank charges and outstanding checks. 3. The adjusted cash in bank balance for Case Company on December 31, 2006 is $3,655,000 after reconciling the bank statement with deposits in transit, erroneous credits, bank charges and outstanding checks.

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    Bank Reconciliation Practice Set

    Uploaded by

    Mirella Alminar
    34 views2 pages
    1. Park Company should report cash of $1,400,000 in its December 31, 2006 balance sheet as this reconciles the checkbook balance and items affecting cash such as deposits in transit and outstanding checks. 2. At August 31, 2006, Apex's correct cash balance is $1,980,000 after reconciling the bank statement balance with deposits in transit, returned checks, bank charges and outstanding checks. 3. The adjusted cash in bank balance for Case Company on December 31, 2006 is $3,655,000 after reconciling the bank statement with deposits in transit, erroneous credits, bank charges and outstanding checks.

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    1. Park Company should report cash of $1,400,000 in its December 31, 2006 balance sheet as this reconciles the checkbook balance and items affecting cash such as deposits in transit and outstanding checks. 2. At August 31, 2006, Apex's correct cash balance is $1,980,000 after reconciling the bank statement balance with deposits in transit, returned checks, bank charges and outstanding checks. 3. The adjusted cash in bank balance for Case Company on December 31, 2006 is $3,655,000 after reconciling the bank statement with deposits in transit, erroneous credits, bank charges and outstanding checks.

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    © All Rights Reserved
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    Download as pdf or txt
    34 views2 pages

    Bank Reconciliation Practice Set

    Uploaded by

    Mirella Alminar
    1. Park Company should report cash of $1,400,000 in its December 31, 2006 balance sheet as this reconciles the checkbook balance and items affecting cash such as deposits in transit and outstanding checks. 2. At August 31, 2006, Apex's correct cash balance is $1,980,000 after reconciling the bank statement balance with deposits in transit, returned checks, bank charges and outstanding checks. 3. The adjusted cash in bank balance for Case Company on December 31, 2006 is $3,655,000 after reconciling the bank statement with deposits in transit, erroneous credits, bank charges and outstanding checks.

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    of 2

    BANK RECONCILIATION

    The following information pertains to Park Company at December 31, 2006:


    Bank statement balance 1,000,000
    Checkbook balance 1,400,000
    Deposit in transit 500,000
    Outstanding checks 100,000
    1. In Park’s December 31, 2006 balance sheet, cash should be reported at

    In preparing its August 31, 2006 bank reconciliation, Apex Company has available
    the following information:
    Balance per bank statement 1,805,000
    Deposit in transit 325,000
    Return of customer’s check for insufficient fund 60,000
    Outstanding checks 275,000
    Bank service charge for August 10,000
    2. At August 31, 2006, Apex’s correct cash balance is

    In preparing its bank reconciliation at December 31, 2006, Case Company has
    made available the following data:
    Balance per bank statement 3,800,000
    Deposit in transit 520,000
    Amounts erroneously credited by bank to Case’s account 40,000
    Bank service charge for December 5,000
    Outstanding checks 675,000
    3. The adjusted cash in bank balance on December 31, 2006 is

    In your audit of Mindanao Company as of December 31, 2006, you gathered the
    following:
    Balance per book 1,000,000
    Bank charges 3,000
    Outstanding checks 235,000
    Deposit in transit 300,000
    Customer note collected by bank 375,000
    Interest on customer note 15,000
    Customer check returned NSF 62,000
    Depositor’s note charged to account 250,000
    4. The correct cash balance amounts to

    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,
    2006:
    Balance per bank statement 2,000,000
    Balance per book 850,000
    Outstanding checks (including certified check of P100,000) 500,000
    Deposit in transit 200,000
    December NSF checks (of which P50,000 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 P20,000 750,000
    5. The cash in bank balance to be shown on Core’s December 31, 2006 balance
    sheet is
    Aries Company keeps all its cash in a checking account. An examination of the
    company’s accounting records and bank statement for the month ended June 30,
    2006 revealed the following information:
    • The cash balance per book on June 30 is P8,500,000.
    • A deposit of P1,000,000 that was placed in the bank’s night depository on
    June 30 does not appear on the bank statement.
    • The bank statement shows on June 30, the bank collected note for Aries
    and credited the proceeds of P950,000 to the company’s account.
    • Checks outstanding on June 30 amount to P300,000.
    • Aries discovered that a check written in June for P200,000 in payment of an
    account payable, had been recorded in the company’s records as P20,000.
    • Included with the June bank statement was NSF check for P250,000 that
    Aries had received from a customer on June 26.
    • The bank statement shows a P20,000 service charge for June.
    6. The cash in bank to be shown on the balance sheet on June 30, 2006 is:

    On March 3, 2006, Able Company received its bank statement. However, the
    closing balance of the account was unreadable. Attempts to contact the bank after
    hours did not secure the desired information. Thus, you had to prepare a bank
    reconciliation from the available information summarized below:
    February 28 book balance 1,460,000
    Note collected by bank 100,000
    Interest earned on note 10,000
    NSF check of customer 130,000
    Bank service charge on NSF check 2,000
    Other bank service charges 3,000
    Outstanding checks 202,000
    Deposit of February 28 placed in night depository 85,000
    Check issued by Axle Company charged to Able’s account 20,000
    7. What was the cash balance per bank statement?

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