Question

Requirements:

1. Prepare the bank reconciliation statements

2. Adjusting entries

E. JEISHALEIGH Bank (Checking Account) Jetro Corp. carries its checking account with Jeishaleigh Bank. Jetro is ready to prepare its December 31 bank reconciliation and has requested you as auditor to prepare it for them. The following data are available: .. The November 30 bank reconciliation showed the following: (1) cash on hand held back each day by Jetro for change), P 400 included in Jetro's cash account): (2) deposit in transit, #51, P2,000; and (3) checks outstanding, #121, P1,000; #130, P2,000; and #142, P3,000. P 64,000 190,000 b. Jetro Cash account for December: Balance, December 1 Deposits: #21 - #55, P186,500: #56, P3,500 Checks: #143 - #176, P191,000; #177, P2,500; #178, P3,000; and #179, P1,500 Balance, Dec. 31 (includes P400 cash held each day for change 198,000) P56.000 P 67,600 188,500 (196,000) 6,720 c. Bank statement, December 31: Balance, December 31 Deposits: #51 - #55 Checks: #130, P2,000; #142, P3,000; #143#176, P 191,000 Note collected for Jetro (including P720 interest) Fund transfer received for foreign revenue (not yet Recorded by Jetro) NSF check, from customer Bank service charges Balance, December 31 10,000 200 (70) 76.7500

NOTE:

P is Philippine Peso (Philippine Currency)

Answer 1

	Jetro Corporation
	Bank Reconciliation
	Balance per Bank	76,550
	Add: Deposit in transit (2,000 + 190,000 - 188,500)	3,500
		80,050
	Less: Outstanding checks (1,000 + 2,500 + 3,000 + 1,500)	8,000
	Adjusted Balance	72,050
	Balance per company records	56,000
	Add: Note collection (including interest)	6,720
	Add: Fund Transfer	10,000
		72,720
	Less: Bank service charges	70
	NSF check	200
	Cash held each day for change	400
	Adjusted Balance	72,050
Date	Accounts Titles and explanation	Debit	Credit
	Service charges/Miscellaneous expenses	70
	Cash		70
	(To record bank service charges)
	Accounts receivable	200
	Cash		200
	(To record NSF check)
	Cash	6,720
	Interest Revenue		720
	Notes Receivable		6,000
	(To record Notes receivable with interest)
	Cash	10,000
	Revenue		10,000
	(To record revenue)