Bank Reconciliation Without Solution
Bank Reconciliation Without Solution
Bank Reconciliation Without Solution
EDGARDO CO. was organized on January 2, 12014. The following items are from the company's
trial balance on December 31, 2014
Ordinary Share capital 1,500,000
Share Premium 150,000
Merchandise Inventory 69,000
Land 1,000,000
Building 1,400,000
Furniture and Fixtures 367,000
Accounts Receivable 165,400
Accounts Payable 389,650
Notes payable - bank 500,000
Sales 6,235,200
Operating Expenses (including depreciation of P400,000) 1,005,150
Additional Information is as follows:
1. Deposit in Transit. December 3 384,660
2. Service charge for December 2,000
3. Outstanding checks, December 31 475,000
4. Bank balance, December 31 892,000
5. Edgardo Co.'s mark up on sales is 30%
The cash account of Liezel Company shows the following information at April 30, 2014:
CASH
Date Item Ref. Debit Credit Balance
1-Apr Balance 95,550
30-Apr CR 6 528,900 624,450
30-Apr CP 11 546,200 78,250
Leizel Company received the following bank statement on April 30, 2014:
Bank Statement for April 2014
Beginning Balance 95,550
Deposits and other credits:
April 1 16,300 EFT
4 208,700
9 20,350
12 27,950
17 109,350
22 68,400 BC
23 92,700 543,750
Check and other Debits
April 7 44,550
13 69,500
14 45,150
15 7,350
18 33,200
21 10,950
26 73,600
30 50,000
30 1,000 (335,300)
Ending Balance 304,000
Explanation:
EFT - electronic fund transfer BC - bank collection
US - unauthorized signature SC - service charge
Fermin's bank reconciliation for November revealed one outstanding check (no. 14343) for
P12,000 (written on November 28), and one deposit in transit for P5,550 (made of Nov. 29)
Assume that all errors were committed by Fermin Company, not the bank.