Question
On your examination of the financial statements of Van Angelo Reyes Group Company for The year ended December 31, 2020 you obtained the following information
On your examination of the financial statements of Van Angelo Reyes Group Company for
The year ended December 31, 2020 you obtained the following information on the checking
account of the company:
*The bank statement on November 30, 2020 showed a balance of Php1,530,000. Among
the bank credits in November was customer's note for Php500,000 collected for the
account of the company which the company recognized in December among its
receipts. Included in the bank debits were cost of checkbooks amounting to Php600,
Php5,400 returned check due to DAUD and Php200,00 check was charged by the bank
in error against Van Angelo Reyes Group Co. account. Also in November , you
ascertained that there were deposits in transit amounting to Php400,000 and
outstanding checks totaling Php850,000.
*The bank statement for the month of December showed a total credits of Php2,080,000
and total charges of Php1,020,000. Company books for December showed total receipts
of Php3,678,000 and disbursements of Phpp2,036,000. Bank debit memos for
December were: No. 418 for service charges, Php800 and No. 504 on a customer's
returned check marked "Refer to Drawer" for Php127,200
*The bank error of Php200,000 in November was corrected by the bank in December.
*On December 29, 2020 the company placed with the bank a customer's promissory note
with a face value of Php600,000 for collection. The company treated this note as part of
its receipts although the bank was able to collect on the note only in January 2021.
*AS check for Php19,800 was recorded in the company cash payment book in December
as Php198,000.
-Show in a 4-column bank reconciliation and answer the following questions.
-The Deposit in Transit, 12/31/2017 is ________ and the outstanding checks 12/31/2017 is __________
Please provide a detailed solution and not just the answer. Thank you
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