PROBLEM 2

Roy Merchandising Company just concluded its first year of operations and received its bank statement from Bank of Oita with an ending balance of 555,000. Looking into its cash records, the ending cash balance is 557,050. A small discrepancy but there is a need to find the correct balance for financial statement reporting purposes.

Upon further inquiry, the company accountant determined that there were cash collections and receipts bound for deposit totaling 95,000. Looking into checks issued there were checks that did not make it to the bank for clearing as of the cut-off date of the bank statement, 75,000. A customers note receivable was collected by the bank on the last banking day and the customer failed to notify the company amounting to 20,000; the corresponding interest is 2,000. The customer assumed the company would be notified anyway by the furikomi (bank payment / transfer). There was one customer check determined to have no sufficient fund and therefore it bounced, 4,000. Furthermore, there was a 50 bank service charge reflected in the bank statement.

Required

1. Adjusted cash balance per books

2. Adjusted cash balance per bank