INTERMEDIATE ACCOUNTING 1

Lesson 2
Bank Reconciliation

Problem4-15: Bank Recollection

In preparing its bank reconciliation at December 31, 2014, Smiley Company has the following
available data:

Balance per bank statement, December 31, 2014 38,075

Deposit in Transit, December 31, 2014 5,200
Outstanding Checks, December 31, 2014 6,750
Amount erroneously credited by bank to Smiley's Account, December 28, 2014, 400
Bank Service charges for December, 75
What is the adjusted cash balance?

A. P 36,050 C. P 36,450
B. P 36,125 D. P 36,525

Problem4-16: Bank Reconciliation

While Checking the cash of Ruler Company on December 31, 2014 you find the following
information:
Balance per books P67,760
Balance in checking account
-outstanding checks per books of P9,876 55,323
Deposited in bank closed by BSF 16,000
Deposit in transit 23,345
Currency and Coins counted 9,500
Petty cash fund, -of which P450 is in the form of paid vouchers 1000
Bank Charges not yet taken up in books 58
Receivables from employees 700
Book error in recording a check, the correct
amount as paid by the bank is P890 instead of P980 as recorded in the books or a difference of
90

Question 1
What is the correct cash in bank balance for Ruler Company on December 31, 2014?
A. P 55,415 C. P 70,229
B. P 67,792 D. P 83,792

Question 2
What is the correct cash on hand balance for Ruler Company on December 31, 2014?
A. P 9,500 C. P 12,895
B. P 10,050 D. P 19,500

Problem4-17: Bank Reconciliation

Shown below is the bank reconciliation for LENT company for May 2014:
Balance per bark, May 31, 2014 P75,000
add: deposits in transit 12,000
total 87,000
Less outstanding checks P14,000
Bank credit recorded in error 5,000 19,000
Cash Balance per book, May 31, 2014 P68,000

The bank statement for June 2014 contains the following data:
Total deposits: P55,000
Total charges 48,000
-including an NSF check of P4,000 and service of P200

All outstanding checks on May 31, 2014 including the bank credit were cleared in bank in June
2014. there were outstanding checks of P15,000 and deposits in transit of P19,000 on June 30,
2014
A. P 75,000 C. P 86,000
B. P 82,000 D. P 86,200

Question 2
What is the cash balance per book on June 30, 2014?
A. P 73,800 C. P 90,200
B. P 88,200 D. P 94,400

Problem4-18: Bank Reconciliation

As of June 30, 2014, the bank statement of Marine Trading had an ending balance P373,612.
The following data were assembled in the course of reconciling the bank balance:
The bank erroneously credited Marine Trading for P2,150 on June 19
During the month, the bank charged NSF checks amount to P2,340 of which P800 had been
redeposited on the 24th of June
Collection for June 30 totaling P10,330 was deposited the following month
Check outstanding as of June 30 were P30,205
Notes collected by the bank for Marine Trading were P8,150 and the corresponding bank
charges were P50

What is the adjusted bank balance on June 30, 2014?

A. P 351,587 C. P 358,147
B. P 353,927 D. P 359,687

Problem4-19: Bank Reconciliation

RIch company had the following bank reconciliation at March 31, 2014:
Balance per bank statement, March 31,2014 P46,500
add:Deposit in transit 10,300
56,800
Less: outstanding checks 12,600
Balance per book, March 31, 2014 P44,200
All reconciliation items at March 31, 2014 cleared through the bank in April outstanding checks
at April 30, 2014 totaled P7,500
Question 1
What is the amount of cash disbusements per book in April
A. P 44,600 C. P 54,800
B. P 49,700 D. P 57,200

Question 2
What is the cash balance per buck at April 30,2014
A. P 47,700 C. P 55,200
B. P 52,900 D. P 58,500
Problem4-20: Bank Reconciliation
Everlasting Company is preparing its March 31, bank reconciliation.. The following data are
available:

From the February 28 bank reconciliation:

Deposits in transit, P1,700
Outstanding checks, P3,900

March Data: Per Bank Per Book

Balance, February 28 P74,140 P71,940
March Deposits Reflected 47,600 49,000
March checks reflected (61,700)* (61,000)
Note Collected (inc P200 interest 20,000
Service Charge (120)
Balance, March 31 P79,920 P59,940
Erroneously includes a check drawn by Ever Company for P1,500

Question 1
How much is the deposits in transit at March 31?
A. P 300 C. P 3,100
B. P 1,400 D. P 4,500

Question 2:
How much is the outstanding checks at March 31?
A. P 4,700 C. P 6,900
B. P 6,200 D. P 8,600

Problem4-21: Bank Reconciliation

Thesaurus, Inc. reported a balance of P43,000 in its cash account at the end of the month.
There were P20,000 deposits in transit P15,000 outstanding clerks. The bank statement
showed a balance of P50,000 including a note with face value of P15,000 and a P6,000 service.

How much is the interest on the collected by the bank?

A. P 3,000 C. P 9,000
B. P 6,000 D. P 12,000

Problem4-22: Bank Reconciliation

In preparing its bank reconciliation for the month of December 2014, Promotion has the
following information:
Balance per bank statement, December 31 P396,550
Deposit in transit, December 31 68,750
Outstanding checks, December 31 63,250
Promotion's account erroneously credited by bank on
December 19 2,750
Bank Service Charges for December 550
What should be the balance of cash at December 31?
A. P 387,750 C. P 339,300
B. P 398,750 D. P 402,050
Problem4-23: Bank Reconciliation
Reconciliation of Baron Company's bank account at May 31 was as follows:

Balance per bank statement P105,000

Deposit in transit 15,000
Checks Outstanding (1,500)
Correct Cash balance P118,500

Balance per books P118,640

Bank Service Charge (140)
Correct cash balance P118,500

June Data are as follows:

Bank Books
Checks recorded P115,000 P118,000
Deposits recorded 81,000 90,000
Service charges recorded 120 --
Collection by bank 21,000
-P20,000 note plus interest

NSF check returned with June 30 500

statement
-for redeposit, assumed to be good
balances, June 30 91,380 90,500

How much is the outstanding checks at June 30?

A. (P 1,500) C. P 3,000
B. P 1,500 D. P 4,500

Problem4-24: Bank Reconciliation

The Cashier of Freud Company misplaced all the bank statements for the past years. you
reviewed the accounting records and discovered that the following journal entries were made to
reconcile the June 30, 2014, bank records and accounting records

Accounting Receivable 76,012

Miscellaneous Expense 625
Notes Receivable P10,000
Interest Revenue 500
Cash 66,317
Pre- adjustment cash balance in the accounting records was P371,023.50 outstanding checks
were P10,374 and no other adjustments were required. What is the balance of the cash account
per bank statement as of June 302014?
A. P 304,886.50 C. P 371,023.50
B. P 315,261.50 D. P 381,523.50

Problem4-25: Bank Reconciliation

Abacus company prepares a 4-column bank reconciliation Check no. 143 was written for P66,
700 in the books but in the check cleared the bank for the correct amount of P75, 700

What would be the correct treatment in the reconciliation?

A. On the book side deduct P9,000 from payments and add P9,000 to ending balance.
B. On the book side add P9,000 to payments and deduct P9,000 from the ending balance
C. On the bank side deduct P9,000 from payments and deduct P9,000 to ending balance
D. On the bank side add P9,000 to receipts and add P9,000 to ending balance.

Problem4-26: Bank Reconciliation

Cocoon Corporation keeps all its cash in checking account An examination cocoon corporation
keeps all its cash in checking accounting records and bank statement for the month entitled
December 312014 revealed the following information:

The Cash balance as of December 31 2014 represents:

Bank statement Balance P84,690
Book Balance 85,240

a deposit of P9,500 though the bank's night depository box on December 29, 2014 did not
appear on the bank statement. the bank statement shows that on December 28, 2014 the bank
collected a note for Cocoon and credited the proceeds of P9,350 to the company's account. The
proceeds include P350 interest all of which Cocoon earned during the current accounting
period. Cocoon has not yet recorded the collection.

Checks outstanding on December 31, 2014

No. 504 P 1,500
No. 509 480
No. 519 720

Cocoon discovered that check no. 523 written in December 2014 for P1,380 in payment to a
supplier has been recorded in the company's records as P1,380
Included with the December 31, 2014 bank statement was an NSF check for P2,500 that
cocoon had received from Riverside Company on account on December 19 Cocoon has not yet
recorded the returned check. The bank statement shows a P150 service charge for December.

What should be the journal entry to adjust the cash balance as of December 31, 2014?
A. P Credit to cash of P3,100 C. Net debit to cash of P 6,250
B. Net debit to cash of P 6,250 D. Debit to cash of P 9,350
.
Problem4-27: Bank Reconciliation
Shown below is the bank reconciliation for Central Company for May 2014:
Balance per bank, May 31, 2014 P300,000
Deposit in transit 48,000
Outstanding Checks (56,000)
Bank Credit recorded in error (20,000)
Cash balance per book, May 31, 2014 P272,000

The bank statement for June 2014 contains the following data
Total deposits P220,000
Total charges including an NSF of P16,000 192,000
and service charge of P 800

All outstanding checks on April 30 including the bank credit were cleared in the bank on May 31.
There were outstanding checks of P60,000 and deposits in transits of P76,000 on May 31 2014
What i the cash per bank on June 30, 2014?
A. P 300,000 C. P 344,000
B. P 328,000 D. P 344,800

Problem4-28: Bank Reconciliation

In reconciling the cash in bank of Inner Company with the bank statement balance for the month
of November 2014, the following data are summarized:

Book Debits for November

Including October CM for note collected, P60,000 P800,000
Book credits for November
including NSF of P20,000 & Service charge of P800 620,000
for October
Bank Credits for November
Including CM for November for bank load of P100,000 700,000
and October deposit in transit for P80,000
Bank Debits for November
Including October outstanding checks of P170,000 600,000
and November Service charge of P200

Question 1
What is the amount of outstanding checks for November?
A. P 20,000 C. P 171,000
B. P 170,000 D. P 191,000

Question 2
How Much is the deposit in transit for the month of November?
A. P 40,000 C. P 140,000
B. P 100,000 D. P 220,000

Problem4-29: Bank Reconciliation

The following information was included in the bank reconciliation for Internet Company for June.

Checks & Charges recorded by the bank in June (including a June service charge of P300),
P172,100; Service charge made by the bank in May and recorded on the books in June, P200;
Total of credits to cash in all journals during June, P198,020; Customer NSF check returned as
a bank charge in June (no entry made on books) , P1000; Customer NSF check returned in May
and redeposited in June (no entry made on books: either May or June) P2,500 Outstanding
checks at June P80600 and deposit in transit in June, P6,000

What were the total outstanding check at the beginning of June?

A. P 33,600 C. P 53,530
B. P43,500 D. P 60,200

END