PROBLEMS

Problem 3-1 (ACP)

Sassy Company provided the following data for the month of ,
July:
Cash in bank
Balance June 30 1,000,000
Book debits for July including June CM
for note collected, P300000 4,000,000
Book credits for July including June NSF
of P100,000 and service charge of P4,000 3,600,000
Bank statement for July
Balance June 30 , 1,650,000
Bank debits for July including service
charge of PLOOO and June outstanding
checks of P854,000 2,500,000
Bank credits for July including CM for
bank loan of P500,000 and June deposit in
transit of P400,000 3,500,000
Required:
Prepare bank reconciliation on June 30 and July 31, and
adjusting entries on July 31.
Problem 3-2 (ACP)
Beehive Company provided the following information:
Balance per book October 31 600,000
Receipts per book for November (collection from
customer, P100,000 recorded as P10,000) 2,200,09910
Disbursements per book io'r November
(check for P300,000 in payment ofaccount
recorded as P30,000) 1,800,000
Balance per bank statement November 30 930,000
Deposit in transit October 31 300,000
Outstanding checks November 30 400,000
Bank receipts for November including an
erroneous credit of 13.100000 which should have
been credited to Beelm'e Company 2,500,000
Bank disbursements for November incl uding
check of Beelme Company. P200000 1,970,000
Required:
Prepare bank reconciliation on October 31 and November
30, and adjusting entries on November 30.

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Problem 3—3 (1AA)

Fabulous Company provided the followm'g data concerning

cash on July 31:

Checks drawn Bank statement

No. 101 600,000 Balance, July 31 2,700,000

No. 102 700,000 Charges:
No. 103 300,000 Checks paid 4,000,000
No. 104 400,000 Service charge 20,000
No. 105 450,000 Credits:
No. 106 600,000 Deposits 3,500,000
No. 107 650,000 Note collected 1,500,000
No. 108 500,000

Balance of cash per book on July 1, P1,270,000. Cash receipts

per cash book for the month of July P3,400,000.

Checks paid by bank include all checks issued durm'g the

month of July except No. 107 and No. 108.

On July 3 1 cash received but not deposited m' bank, P400,000.

Required:

a. Prepare bank reconcfl1"at1'on on July 1 and July 31.

b. Prepare adjusting entries on July 31.

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 Problem 3—4 (ACP)

Flamboyant Company prepared the following bank

reconc1l'iation on October 31:

Cash account balance 990,000

Less: Bank service charge 5,000
Deposit outstanding 45,000
Check erroneously charged by
bank against entity's account 10,000 60,000
\

Balance 930,000
Add: Checks outstanding 125,000
Unrecorded collections 45,000 170,000
Bank statement balance 1,100,000

October 31 balance per book 990,000

Book credits 1,200,000
Book debits 710,000

October 31 balance per bank statement 1,100,000

Bank credits 500,000
Bank debits 1,000,000

Debit memo for service charge in November 10,000

Debit memo for a customer’s NSF check m' November 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 reconcfliation statement on November 30

showing adjusted balances.

b. Prepare one adjusting entry only on November 30.

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Problem 3—5 (ACP)

Efficient Company showed the following information:

Cash m' bank balance, March 3 1 200,000

Book credits for Aer 720,000
Book debits for April' 800,000

Bank statement balance, March 3 1 330,000

Bank debits 530,000
Bank credits 700,000

Note collected by bank:

March 60,000
April' 100,000'

Service charge:
March 8,000
April' 2,000

NSF check:
March 20,000
April' 30,000

Deposit m' transit:

March 3 1 80,000
April 30 220.000

Outstandm'g checks:
March 3 1 178,000
April' 30 372,000

Required:

Prepare a proof of cash for the month~of Aprll' following the

"bookto bank" method.

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 Problem 3-6 (1AA)

Bigotry Company provided the following information:

Balance per book, August 31 2,000,000

Receipts per book for August 4,400,000
Disbursements per book for August 3,600,000

Balance per bank, August 31 1,860,000

Bank receipts for August 5,000,000
Bank disbLu‘sements for August 3,940,000

August collection of P200000 recorded by entity as 20,000

August check in payment of account
payable for P600,000 recorded by entity as 60,000
Deposit of Bigot Company
erroneously credited by bank to Bigotry Company 200,000
August check of Bigot Company
erroneously charged by bank to Bigotry Company 400,000

NSF check:
July 100,000
August 50,000

Note collected by bank for Bigotry Company:

July 200,000
August 300,000

Deposit m' transit:

July 31 600,000
August 31 480,000

Outstanding checks:
July 3 1 100,000
August 31 650,000

Required:

Prepare a proof of cash for the month of August following

the "book to bank" method. ‘

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Problem 3-7 (1AA)

Bedlam Company provided the following data for the month

of December:

November 30 December 31

Cash in bank account balance 2,032,000 3,160,000

Bank statement balance 1,890,000 2,900,000
Bank debits 1,080,000
Bank credits ?
Book debits ?
Book credits 1,440,000
Outstanding checks 180,000 592,000
Deposit in transit 80,000 498,000
Check erroneously charged by
bank against entity’s account
and corrected m' subsequent month 40,000 00',000
Bank service charge 2,000 4,000
Note recorded as cash receipt by
entity when placed with bank
for collection and note is actually
collected by bank in subsequent
month and credited by bank to
entity’s account m' same month 200,000 300,000

Required:

a. Prepare a four-column reconcfldation showing adjusted

balances.

b. Prepare one adjusting entry only on December 31.

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Problem 3-8 (IAA)

J(6 rgon Company provided the followm'g data concermn'g the

cash records for the months of September and October.

September 30 October 31
Book balance 1,900,000 ?
Total cash receipts per book 1’400)m0
Total cash disbursements per book 2,400,000

Bank balance 2,100,000 ?

Total charges in bank statement 2,500,000
Total credits in' bank statement I’ZOOIW

NSF check 60,000 40,000

Collections of accounts receivable
not recorded by entity and
- corrected in' subsequent month 30,000 50,000
Overstatement of check m'
payment of salaries corrected
m' subsequent month 90,000 120,000
Deposit in transit 130,000 260,000
Outstanding checks 270,000 30,000

Required:

a. Prepare a four-column reconcfliation showing adjusted

balances. '

b. P:epare adjusting entries on October 31.

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Problem 3-9 (PHILCPA Adapted)

Humanizer Company provided the followm'g information:

Balance per bank statement — May 31 2,600,000

Deposits outstanding 300,000
Checks outstandm'g (_L_)'
100 000

Correct bank balance -— May 3 1 2,800,000

Balance per book — May 3 1 2,810,000

Bank service charge L___)
10,000
Correct book balance — May 3 1 2,800,000

June data are as follows: Bank Book

Checks recorded 2,200,000 . 2,500,000

Deposits recorded 1,600,000 1,800,000
Service charges recorded 50,000
Note collected by bank, P500,000 plus m'terest 550,000
NSF check returned with June 30 statement 100,000
Balances 2,400,000 2, 100,000

1. What is the amount of outstanding checks on June 30?

a 300,000
b. 400,000
c. 200,000
(1. 100,000

2. What is the amount of deposits m' transit on June 30?

a. 300,000
b. 100,000
0. 200,000
d. 500,000

3. What is the adjusted cash in bank on June 30?

a. 2,500,000
b. 2,400,000
0. 2,100,000
(1. 2,800,000

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l,ted)
flowing bank re

Problem 3-1 1 (AICPA Adapted)

onLkoune
able 30:
Com p any p repared t
he followmg
‘ bank reconmation
- 11‘
Balance per ba.nk statement,

V,a
June 30
Deposit in transit 3,000,000

uhV
400,040

_
Total _

,‘
outstanding checks 3,400,000
( 900,000)

‘~,\_may";
Balance per book, June 30
ny 2,500,000
heck
following:
November 3 Deposits, m'cludm'g P200,000

ayflhmarvfweu
note collecte (1 for Lovable

, -
ling the ban Disbursements, including P140,000
NSF check and
9,000,000
P10,000 service charge
ire outstan 7,000,000

Ly.
1 December 3 All reconcilin g items on June
30 cleared through the bank
July. in

a. 5,000,000
b. 5,200,000
0. 5,550,000
d. 5,400,000
2. What is the cash balance per book on
July 31?
a. 5,400,000
b. 5,350,000
c. 5,550, 000
d. 4,500,000
3. What is the amount of cash receipts per book in July?
a. 9,400,000
b. 9,600,000
c. 8, 600,000
ts per book“ d. 9,800,000
' 4. What 1s" the amount ofcash disbursements per bookm' July?
a. 6,550,000
b. 6, 700,000
0. 7,300,000
d. 6,850,000

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 Problem 3-12 (AICPA Adapted)

Loquacious Company prepared the following bank

reconcfliation on June 30.

Balance per bank 9,800,000

Deposit in transit 400,000
Outstanding checks (1,400,000)
Balance per book 8,800,000

There were total deposits of P6,500,000 and charges for

'disbursements of P9,000,000 for July per bank statement.
All reconc1h"ation items on June 30 cleared the bank on July
31. Deposit in transit totaled P600,000 and checks
outstanding amounted to P1,000,000 on July 31.

1. What is the adjusted cash in bank on July 31'?

a. 7,300,000
b. 7,900,000
0. 6,900,000
d. 6,300,000

2. What is the cash balance per book on July 31?

a. 6,900,000
b. 7,300,000
0. 6,300,000
d. 8,800,000

3. What is the amount of cash receipts per book in July?

a. 6,700,000
b. 6,500,000
c. 6,300,000
Id. 7,100,000
4. What is the amount of cash disbursements per book m’ July?
8,600,000
7,600,000
9,400,000
8, 400,000
999‘?“
Problem 3-13 (AICPA Adapted)
Opaque Company prepared the following bank reconc1h"ation V‘
on March 31:

Balance per bank statement, March 31 4,650,000

Deposit in trans1t 1,000,000
Total 5,650,000
Outstanding checks (_1,250,000)
Balance per book, March 31 4,400,000

Data per bank statement for the month of April follow:

Deposits 6,000,000
Disbursements 5,000,000

All reconcfll'ation items on March 31 cleared through the bank

1n" April'.
Outstandm'g checks on April' 30 totaled P750,000 and deposits
in transit amounted to P1,500,000.

1. What is the adjusted cash in bank on Aprfl 30?

a. 5,650,000
b. 7, 150,000
0. 4,650,000
d. 6,400,000
2. What is the cash balance per ledger on April' 30?
a. 6,400,000
b. 5,650,000
c. 4,900,000
d. 4,650,000
3 What is the amount of cash receipts per book in April'?
a. 5,000,000
b. 6,500,000
c. 7,500,000
‘ (1. 5,500,000
4. What is the amount of cash disbursements per
book in April?
a. 5,000,000
b. 5,500,000
0. 4,500,000
(1. 5,750,000

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