PROBLEM 9:

Presented below are a series of unrelated situations:

1. The accountants of NARCISA Co. provided the following data in reconciling the
April 30 cash in bank balance:
Balance per bank, April 30 P130,350
Balance per book, April 30 85,000
Bank service charge 2,000
Deposit in transit 49,000
Outstanding checks 17,650
Note collected by bank including P11,200 interest
(Narcisa not yet informed) 136,000
Check drawn by XYZ Co. erroneously charged by
Bank to Narcisa’s account 54,600

A transportation error was made in recording a sale and deposit in the sales journal
and cash receipts journal in April.
Correct amount P13,658
Recorded as P16,358

What is the adjusted cash balance on April 30?

2. The following information is included in EMIL CORPORATION’s bank statement

for the month of march:
A customer’s check has been marked “NSF” by the
Bank and returned P13,000
Bank service charge for March 1,200
In comparing the bank statement to the company’s cash records, you found:
Outstanding checks March 31 P184,000
Deposit made but are not yet shown in the April
bank statement 14,000
The deposits in transit and outstanding checks have been correctly taken up in the
company’s books. You also found a customer’s check for P17,400 that had not yet
been deposited and had not been recorded in Emil’s books. Your client’s books show
a cash balance of P36,420.

What is Emil Corporation correct cash balance at March 31?

3. The following information pertains to a checking account of a company at June 30,

2012.
Balance per bank statement P200, 000
Interest earned for the second quarter 500
Outstanding checks 15, 000
Customer’s checks returned for insufficient funds 5, 000
Deposit in transit 25, 000

What is the adjusted cash balance at June 30, 2012?

4. A company is reconciling its bank statement with internal records. The cash balance
per the company’s books is P45,000. There are P5, 000 of bank charges not yet
recorded, P7,500 of outstanding checks, P12,500 of deposits in transit, and P 15,000
of bank credits and collections not yet taken up in the company’s books.

What is the cash balance per bank?

 5. A company shows a cash balance of P 175,000 on its bank statement dated June 30.
As of June 30, there are P55, 000 of outstanding checks and P37,500 of deposits in
transit.

What is the correct cash balance on the company nooks as of June 30?

6. The cash account shows a balance of P225,000 before reconciliation. The bank
statement does not include a deposit of P11, 500 made on the last day of the month.
The bank statement shows a collection by bank of P4,700 and a customer’s check for
P1,600 was returned because it was NSF. A customer’s check for P2,250 was
recorded on the books as P2,700, and a check written for P395 was recorded as P485.

What should be the correct cash balance?

7. On July 5, 2012, EMILIA CORP. received its bank statement for the month ending
June 30. The statement showed a P209,500 balance while cash account balance on
June 30 was P35,000. In reconciling the balances, the auditor discovered that:
1. The June 30 collections of P176,000 were recorded on the books but were not
deposited until July.
2. The bank service charges for the month of June totaled P3,000.
3. A paid check for P24,300 was entered incorrectly in the cash payments as
P34,200.

What is the total outstanding check at June 31, 2012?

Answer the questions relating to each of the seven situations. . .

PROBLEM 10:
The bank statement for the current account of IAN Co. showed a December 31, 2012, balance
of P585,284. Information that might be useful in preparing bank reconciliation is as follows:
a) Outstanding checks were P52,810
b) The December 31, 2012, cash receipts of P23,000 were not deposited in the bank
until January 2, 2013.
c) One check written in payment of rent P8,940 was correctly recorded by the bank but
was recorded by IAN Co. as a P9,840 disbursement
d) In a accordance with prior authorization, the bank withdrew P18,000 directly from
the current account as payment on a mortgage not payable. The interest portion of
that payment was P14,000. Ian Co. has made no entry to record the automatic
payment.
e) Bank service charges of P740 were listed on the bank statement
f) A deposit of P35,000 was recorded by the bank on December 12, but it did not belong
to Ian Co.
g) The bank statement included a charge of P3,400 for a not-sufficient-fund check. The
company will seek payment from the customer.
h) Ian Co. maintains an P8,000 petty cash fund that was appropriately reimbursed at the
end of December.
i) According to instructions from Ian Co. on December 31, the bank withdrew P40,000
from the account and purchased Treasury bills for Ian Co. the company recorded the
transaction in its books on December 31 when it received notice from the bank. Half
of the treasury bills mature in 3 months and the other half in 6 months.

1. What is the cash bank balance per books on December 31, 2012?
A. P549,714 C. P534,914
B. P543,514 D. P541,714
2. What is the adjusted cash in bank balance on December 31, 2012?
 A. P520,474 C. P518,674
B. P527,274 D. P520,154
3. What amount would Ian Co. report as cash and cash equivalents in the current asset
section of the December 31, 2012, statement of financial position?
A. P928,474 C. P720,474
B. P728,474 D. P735,274

PROBLEM 11:
The following data were taken from GARAY’s check register for the month of April. Garay’s
bank reconciliation for March showed one outstanding check, check no. 178 for P2,150
(written on March 20), and one deposit for P4,350 (made on March 31).

2012, April Item checks deposits balance

1 Beginning Balance 6,150
1 Deposit 26,167 32,317
1 Check No. 179 250 32,567
4 Check No. 180 10,673 21,898
27 Deposit 11,774 33,672
29 Check No. 181 13,217 20,490

The following is from Garay’s Bank statement for April:

Date Item Checks Deposits Balance
2012, April 1 Beginning Balance 3,950
3 Check No. 179 250 3,700
3 Deposit 4,350 8,050
5 Check no. 180 10,673 (2,623)
5 Automatic loan 8,150 5,527
5 Deposit 26,417 31,944
20 NSF check 1,000 30,944
20 Service charge 600 30,344
30 interest 82 30,426
Assume that any errors or discrepancies you find are Garay’s, not the bank’s.

What is the adjusted cash balance as of April 30?

A. P26,833 C. P30,4226
B. P26,838 D P26,872

PROBLEM 12:
The following information pertains to FLINT CORP:

Flint Corp
BANK RECONCILIATION
November 31, 2012

Balance per bank statement P435,000

Less: outstanding checks
No. 4321 P6,000
4329 15,000
4340 1,700
4341 4,675 27,375
P407,625
Add: Deposit in Transit 16,200
Balance per books P423,825

CHECK REGISTER
 December 2012
Date Payee No. Vouchers discount Cash
Payable
Dec. 1 San Beda, Inc 4342 P10,000 P500 P9,500
3 Miriam Corp. 4343 4,200 - 4,200
7 UE 4344 3,755 - 3,755
Enterprises
12 PSBA Corp. 4345 12,000 120 11,880
15 Payroll 4346 96,000 - 96,000
16 BU, Inc. 4347 6,300 - 6,300
18 New Era Co. 4348 14,200 142 14,058
21 UST, Inc. 4349 7,000 - 7,000
22 Petty cash 4350 10,000 - 10,000
fund
28 Payroll 4351 98,000 - 98,000
TOTAL P261,455 P762 P260,693

BANK STATEMENT
BANKABLE BANK
PERIOD: November 30, 2012 – December 31, 2012
No: 001-43-44
Date Description Check Debit Credit Balance
No.
Balance last P435,000
statement
Dec. 1 Cash deposit P15,000 451,200
1 Check issued 4329 9,500 P16,200 436,200
4 Check issued 4342 4,675 426,700
4 Check issued 4341 422,025
5 Check 4,200 49,000 471,025
6 Check 4343 466,825
8 Check 3,755 14,000 480,825
10 Check 4344 96,000 477,070
15 Encashment 4346 10,000 381,070
22 Encashment 4350 98,000 271,070
28 Encashment 4351 273,070
29 Debit memo – 1,000 272,070
service charge
29 Credit memo- 1,550 273,620
interest
Deposits in transit at December 31 totaled P49,000.

1. What is the total book receipt for December?

A. P113,550 C. P63,000
B. P80,750 D. P112,000
2. What is the cash balance per books on December 31, 2012?
A. P275,132 C. P291,332
B. P266,132 D. P274,370
3. What is the total outstanding check on December 31, 2012?
A. P68,313 C. P46,938
B. P39,238 D. P40,938
4. What is the adjusted cash balance on November 31, 2012?
A. P446,375 C. P423,825
B. P417,825 D. P435,000
5. What is the adjusted cas354h balance on December 31, 2012?
 A. P281,682 C. P226,682
B. P275,682 D. P274,920

PROBLEM 13:
EDGARDO CO. was organized on January 2, 2012. The following items are from the
company’s trial balance on December 31, 2012.
Ordinary share capital P1,500,000
Share premium 150,000
Merchandise inventory 69,000
Land 1,000,000
Building 1,400,000
Furniture and fixture 367,000
Accounts receivable 165,400
Accounts payable 389,650
Notes payable-bank 500,000
Sales 6,235,200
Operating expenses (including depreciation of P400,000) 1,005,150