a. extended to the an addition. b. extended to the body Adition. extended to the book in asa deduction. not included in the proof of cash if the error is already Regi corrected in the current month 3 PROBLEM 3: EXERCISES 1. ABC Co. is preparing its September 30, 20x1 bank reconciliation. Relevant information is shown below: Balance per books 5,313 Balance per bank statement 6,200 Collection of note receivable by bank (including P155 interest) 3,565 NSF check returned by bank 1,860 Bank service charges for December 62 b. Deposits in transit 2,418 Outstanding checks (including certified checks of P310) 3,100 A P1,395 collection of accounts receivable was erroneously recorded in the books as P1,593. The actual amount deposited to the bank is P1,395. A P930 loan amortization of AVC Co. was erroneously debited by the bank to ABC Co.'s account. Requirements: a. Prepare the bank reconciliation. b. Prepare the month-end adjusting entry. 2. Entity A is preparing its March 31, 20x1 bank reconciliation. The following information was determined: .oo SHOT ON POCO M3 2021.2.4 12:39 eduction. Bank Reconciliation 137 a. d book debit The cash balance per books is P280,000, while the cash balance per bank statement is P320,000. b. Credit memo - P20,000 addition. c. Debit memo - P15,000 addition. d. Deposits in transit - P75,000 column as e. Outstanding checks - P25,000 f. The disbursements per books are overstated by P45,000. rror is alread g. The bank debits are understated by P40,000. Requirement: Prepare the bank reconciliation. 3. Entity A is preparing its February 28, 20x1 bank reconciliation statement. The following information was determined: 20x1 bar Cash balance per accounting books, Feb. 28, 20x1, P260,000 low: Cash balance per bank statement, Feb. 28, 20x1, P205,000 5,31 Additional information: 6,20 a. A customer deposited P30,000 to Entity A's bank account as 3.5 payment for an account receivable. This is not yet recorded in 1.86 the books of accounts. b . A P102,500 check deposited by Entity A during the month is 2,4 not yet credited to Entity A's account. 3.10 C. A check drawn in the amount of P22,500 is not yet presented to the bank for payment. d. The bank returned a check deposit amounting to P5,000 s erroneous because of insufficiency in the funds of the drawer. The check unt deposit was received from a customer as payment for accounts receivable. ously debit Requirements: C. Prepare the bank reconciliation. d. Prepare the adjusting (reconciling) entries. .oo SHOT ON POCO M3 2021.2.4 12:39
