Question

Required:

1. Prepare a corrected bank reconciliation statement showing both balances adjusted over/(short)

2. Prepare the necessary compound adjusting entries.

197,054.64 2,288.52 4.881.60 BANK RECON 2 The following bank recon is prepared by a cashier. Balance per books Add: Outstanding checks 0223 0225 0227 Unrecorded debit Less: Undeposited receipts Unrecorded credit Correct cash balance 1.983.48 9.153.60 1.224.00 (32.110.241 (1,624.00) 171.498.00 Additional information: a The Cash book balance included undeposited receipts. b Acredit of P3,624 on the bank records for a customer deposit made directly through the banks for payment of account C AP 224 bank debit also appeared in the bank statement for service charges for the month of October d AP 1,000 depositor's note was also charged by the bank for the month. These were not yet recorded on the books e The bank statement had a balance of P 173,698 f The following are the correct outstanding checks: 0210 1.418.40 0223 2,288.52 0218 1,560.00 0225 4,881.60 0219 3,039.00 0227 1,983,48 & h Cash on hand amounted to P 32,310.24 which appeared to be undeposited per books. The cut-off bank statement the following month shows among others, a bank credit on Nov 3 for a correct ion of an October erroneous bank charge amounting to P 200 REQUIRED 1 Prepare a corrected bank reconciliation statement showing both balances adiusted over/(short)? 2 Prepare the necessary compound adjusting entries

P is Philippine Peso (Philippine Currency)

Answer 1

BANK RECONCILIATION STATEMENT

BALANCE AS PER BANK STATEMENT 173698

ADD:

SERVICE CHARGES FOR THE MONTH 224

DEPOSITOR'S NOTE CHARGE BY BANK 1000

ERRONEOUS BANK CHARGE 200

LESS:

CUSTOMER DEPOSIT MADE DIRECTLY THROUGH BANK (3624)

CASH BALANCE AS PER BOOKS    171498

COMPOUND ADJUSTING ENTRIES:

BANK A/C DR. 3624

TO ACCOUNTS RECEIVABLE A/C 3624

BANK CHARGES A/C DR. 224

TO BANK A/C 224

DEPOSITOR'S NOTE CHARGES A/C DR. 1000

TO BANK A/C 1000

BANK A/C DR. 15170

TO ACCOUNTS PAYABLE ACCOUNT 15170

CASH A/C DR. 32310.24

TO BANK A/C 32310.24

BANK CHARGES A/C DR. 200

TO BANK A/C 200