Hello. The topic is related to bank reconciliation statement. Please double check the your answers. And if it's handwritten, make sure it's readable. Thanks. I will provide the sample below. The first picture is the task.
The XYZ Corporation provided the following information. CASH IN BANK - BNP Bank Jan 1 Deposit 90,000 Jan 4 Check#32401 4,500 12 deposit 45,000 6 check#32402 13,500 23 deposit 9,000 8 check#32403 36,000 27 deposit 72,000 9 check#32404 9,100 12 check#32405 27,000 20 check#32406 22,500 28 check#32407 45,000 XYZ Corporation - Bank Statement Date Check no Withdrawals Deposits Balance Jan 1 90,000 90,000 10 32404 9,100 80,900 20 32401 4,500 76.400 22 32406 22,500 53.900 27 45,000 98,900 29 9,000 107,900 29 32403 36,000 71,900 29 27,000CM 98,900 31 1,800 SC 97,100 Legend: CM - Credit Memo SC- Service Charge DM - Debit memo RT - Returned Check The credit made by the bank on January 29 represents the proceeds of a note received from a customer given to the bank by the entity on Januaryr 26. Required: 1. Prepare bank reconciliation for the month of January 2020. 2. Prepare adjusting entries.Date Check no. Withdrawals Deposits Balance Jul 4 54,000 54,000 Jul 5 54011 4,500 49.500 Jul 8 54012 9,000 40,500 Jul 11 54013 16,200 24,300 Jul 12 18,000 42,300 Jul 14 54014 1,800 40,500 Jul 24 27.000 67.500 Jul 25 13,500 CM 81,000 JUL 30 4,500 RT 76,500 Jul 30 900 SC 75,600 Legend CM - Credit Memp RT - Returned Check DM - Debit Memo SC - Service Charge The following information is gathered in connection to the CM and the DM as shown in the bank statement. 1. The CM P 13,500on July 25 represents proceeds of the note collected by the bank in favor of the company. 2. The RT of P4,500 represents check of customer deposited previously but returned by the bank due to "no sufficient funds" or NSF. Below is the solution given: (This is a sample only) ABC CORPORATION BANK RECONCILIATION JULY 30, 2020 Balance per book. P 45,000 Add: Note collected by the bank 13.500 Total P 58,500 Less: NSF check 4,500 Service Charge 900 5.400 Adjusted balance per book P 53,100 Balance per bank P75,600 Add: Deposit in transit 36,000 Total P1 11,600 Less: Outstanding checks Check#54015 33,300 Check#54016 25.200 58.500 Adjusted balance per bank P53,100 Preparation of adjusting entries a. Cash in bank 13,500 Notes Receivable 13,500 To record notes collected by the bank b. Accounts Receivable 4.500 Cash in Bank 4,500 To record the NSF check c. Bank Service Charge 900 Cash in Bank 900 To record bank service charge. : Only the reconciling items per book require adjusting entries on the book of the depositor. The adjustments are necessary to bring the cash in bank balance to its correct balance for statement presentation purposes.ILLUSTRATIVE PROBLEM: The cash records of ABC Corporation for the month of July are as follows: Cash Receipts Cash Disbursements July 3 P54,000 July 4 Check# 54011 P 4,500 (sample only) 11 18,000 5 Check# 54012 9,000 3 27,000 8 Check# 54013 16,200 31 36.000 12 Check# 54014 1,800 135,000 28 Check#54015 33,300 31 Check#54016 25.200 90,000 The general ledger of the company shows the cash in bank account for July as follows: Cash in Bank - FDA Bank July 30 CR 135,000 July 30 CD 90,000 The balance of the cash account on the depositor's book is P45,000.00 Bank Statement The following is the bank statement for July received from the FDA Bank In account with 200211 ABC Corporation Cebu City
