Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

IV. Reconciliation of Bank and Book Balances (30%) Directions: 1. Prepare the bank reconciliation for ABC Trading at May 31, 2018 2. Prepare the journal

image text in transcribed
IV. Reconciliation of Bank and Book Balances (30%) Directions: 1. Prepare the bank reconciliation for ABC Trading at May 31, 2018 2. Prepare the journal entries to update the Cash in Bank account. On May 31, 2015, the Cash in Bank account of ABC Trading had a balance of P144,332.00. On that date, the bank statement indicated a balance of P190,695.00. Comparison of returned and bank memos revealed the following: 1. Deposits in transit as at May 31, 2015 amounted to P62,815.00. 2. Outstanding checks as at May 31, totaled P29,358.00. 3. The bank erroneously charged a P6,500.00 check of EDC trading against the ABC Trading bank account. 4. A P500.00 bank service charge has not yet been recorded in the books. 5. Included with the paid checks is a memo indicating that DEF Merchandising's Check for P12,800.00 had been returned DAUD. 6. ABC Trading recorded a P2,180.00 payment for utilities as P21,800.00 7. ABC Trading forgot to record P80,000.00 borrowed loan from the bank on a 10% six month note. The bank already credited the P80,000.00 to ABC Trading's account

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield

13th Edition

9780470374948, 470423684, 470374942, 978-0470423684

More Books

Students also viewed these Accounting questions

Question

1. What are the four main points of IT strategic plans?

Answered: 1 week ago