Problem 9-4 Flamboyant Company

Problem 3-4 (ACP) Flamboyant Company prepared the following ban reconciliation on October 31: 990,000 5,000 45,000 Cash account balance Less: Bank service charge Deposit outstanding Check erroneously charged by bank against entity's account 10,000 60,000 930,000 125,000 45,000 Balance Add: Checks outstanding Unrecorded collections Bank statement balance 170,000 1,100,000 October 31 balance per book Book credits Book debits 990,000 1,200,000 710,000 October 31 balance per bank statement Bank credits Bank debits 1,100,000 500,000 1,000,000 Debit memo for service charge in November Debit memo for a customer's NSF check in November 10,000 50,000 During the month of November, the bank corrected the P10,000 error committed in prior month. The entity recorded as cash receipt a customer note receivable of P100,000 placed with the bank for collection on November 30. The note was not collected until the subsequent month. Required: a. Prepare bank reconciliation statement on November 30 showing adjusted balances. b. Prepare one adjusting entry only on November 30, 88