Question
IV. The following data related to ABC Services, Inc.: Nov. 30, 2019 Dec. 31, 2019 Balance per books P270,311.00 ??? Balance per bank statement 294,771.00
IV. The following data related to ABC Services, Inc.:
Nov. 30, 2019 Dec. 31, 2019
Balance per books P270,311.00 ???
Balance per bank statement 294,771.00 P148,986.00
Receipts not yet deposited 21,270.00 32,925.00
Outstanding checks 40,525.00 35,191.50
Bank service charges 295.00 158.00
Interest income credited by the bank 5,500.00 4,925.00
Other Information:
1. Receipts and disbursements per books during December are P1,072,850.00 and P1,195,536.50, respectively. (Note: Cash, beginning + increases in cash - decreases in cash = Cash, end)
2. Total deposits/credits reflected in the bank statement amounted to P1,065,620.00.
3. Check No. 137412 for P2,300.000 was recorded by the depositor as P3,200.00 in error. (Transposition Error) 4. P625.00 interest chargeable to ABC Trading, Inc. was erroneously charged by the bank to ABC Services, Inc.
5. Customer's check for P5,947.00 deposited on December 28, 2019 was found to be uncollectible.
6. No sufficient fund check in the amount of P5,000.00 was returned by the bank and redeposited by ABC Services, Inc. during December. No entry was made in the books for the return or redeposit. (In the records of the depositor, this will increase the Book Disbursements - Book Credits but since it was redeposited in the same month, it will also increase Book Receipts - Book Debits)
Required: have a four-column bank reconciliation for ABC Services, Inc. using the Adjusted balance method.
Solution Template:
ABC Services, Inc.
Four-Column Reconciliation
November 30-December 31, 2019
Nov. 30 December Receipts December Disbursements
Dec. 31
Balances per bank statement P294,771.00 P1,065,620.00 P1,211,405.00 P148,986.00
Receipts not yet deposited
November 30 21,270.00 (21,270.00)
December 31 32,925.00 32,925.00
Outstanding checks
November 30 (40,525.00) (40,525.00)
December 31 35,191.50 (35,191.50)
Erroneous charge by bank __________ ____________ _____(625.00) _____625.00
Correct balances P275,516.00 P1,077,275.00 P1,205,446.50 P147,344.50
Balances per books P270,311.00 P1,072,850.00 P1,195,536.50 P147,624.50
Bank service charges
November 30 (295.00) (295.00)
December 31 158.00 (158.00)
Interest credit by bank
November 30 5,500.00 (5,500.00)
December 31 4,925.00 4,925.00
Uncollectible customer's check 5,947.00 (5,947.00)
NSF returned and redepositedin December
5,000.00
5,000.00
Check #137412 for P2,300 recorded as P3,200 in error
__________
____________
_____(900.00)
_____900.00
Correct balances P275,516.00 P1,077,275.00 P1,205,446.50 P147,344.50
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