For items 1-8: Select the action necessary to reconcile the bank statement.

A. Add to Bank Balance C. Deduct from Bank Balance

B. Add to Book Balance D. Deduct from Book Balance

1. The bank credited Php50,000 to the account of the company for a bank loan

that it was requested and a service fee was charged amounting to Php3,000

2. The company issued a PDC(Post-dated Check) dated Sept. 8 amounting to

Php10,000 as payment of account to the supplier.

3. A customer's cash payment was correctly recorded by the book as

Php4,500, this amount was directly deposited to the bank. The bank

teller erroneously recorded the cash deposit as Php5,400.

4. A deposit from Three R Company worth Php6,000 was erroneously credited

by the bank teller to the account of 3 R Company.

5. The book unintentionally recorded a Php3,000 cash disbursement as twice.

8. The bank deducted Php600 from the account of 3R Company as 20%

withholding tax for the Php3,000 interest income. The company was

informed upon the receipt of the bank statement on September1 .

For items 9-12

The company received the bank statement for the month with an unadjusted

balance of Php944,000. It includes a debit memo worth Php19,000 and a credit

memo for Php10,000. The company observed that there was a deposit in transit

worth Php200,000 and outstanding checks amounting to Php74,000.

9. How much is the adjusted cash balance?

A. 1,061,000 C.1,079,000

B. 1,070,000 D.1,089,000

10. How much is the unadjusted book balance?

A. 1,061,000 C.1,079,000

B. 1,070,000 D.1,089,000

For items 11-12

The company has an unadjusted book balance of Php500,000. It has a deposit

in transit worth Php59,000 and outstanding check worth Php18,000. The bank

statement shows that interest income worth Php14,000 was credited and a

service charge of Php9,000 was deducted.

11. How much is the adjusted cash balance?

A. 464,000 C.546,000

B. 505,000 D.582,000

12. How much is the unadjusted bank balance?

A. 464,000 C.546,000

B. 505,000 D.582,000

PART 2

Instruction: XYZ Company is closing its books and must prepare a bank

reconciliation for the following items:

A. A bank statement contains an ending cash balance of Php 300,000 on February

2020, whereas the company's ledger shows an ending cash balance of

Php260,900.

B. A bank statement contains a Php100 service charge for operating the account.

C. A bank statement contains interest income of Php20.

D. XYZ issued checks of Php50,00 that have not yet been cleared by the bank.

E. XYZ deposited Php20,000 but this did not appear on the bank statement.

F. A check for the amount of Php470 issued to the office supplier was misreported

in the cash payments journal as Php370.

G. A notes receivable of Php9,800 was collected by the bank.

H. A check of Php520 deposited by the company has been charged back as NSF.

PART 3

Instruction: Put a check mark(/) on the right column that corresponds to the given reconciling items. Use separate sheet of paper. Reconciling Add to Deduct from Add to Deduct from Items Bank Bank Book Book Balance Balance Balance Balance 1.Book Errors 2.Outstanding Check 3.Bank Credit Memo 4. Bank Charges 5. Deposit in Transit