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    Midterm Exam No. 3

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    Anie Martinez
    Rose Company uses a calendar year accounting period. The following summarizes their bank reconciliation and necessary journal entries for May 31: 1) The bank reconciliation shows a correct cash balance of $5,127, which reconciles the $5,139 balance per books after deducting a $12 bank service charge. 2) Journal entries are needed to record the $1,290 credit memo collected by the bank, the $20 debit memo erroneously charged, and the $255 NSF check returned. 3) Corrections are also needed for the errors made in recording checks 609 and 613, and the unrecorded April bank service charge.

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    Midterm Exam No. 3

    Uploaded by

    Anie Martinez
    225 views3 pages
    Rose Company uses a calendar year accounting period. The following summarizes their bank reconciliation and necessary journal entries for May 31: 1) The bank reconciliation shows a correct cash balance of $5,127, which reconciles the $5,139 balance per books after deducting a $12 bank service charge. 2) Journal entries are needed to record the $1,290 credit memo collected by the bank, the $20 debit memo erroneously charged, and the $255 NSF check returned. 3) Corrections are also needed for the errors made in recording checks 609 and 613, and the unrecorded April bank service charge.

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    Midterm Exam No. 3

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    Rose Company uses a calendar year accounting period. The following summarizes their bank reconciliation and necessary journal entries for May 31: 1) The bank reconciliation shows a correct cash balance of $5,127, which reconciles the $5,139 balance per books after deducting a $12 bank service charge. 2) Journal entries are needed to record the $1,290 credit memo collected by the bank, the $20 debit memo erroneously charged, and the $255 NSF check returned. 3) Corrections are also needed for the errors made in recording checks 609 and 613, and the unrecorded April bank service charge.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    225 views3 pages

    Midterm Exam No. 3

    Uploaded by

    Anie Martinez
    Rose Company uses a calendar year accounting period. The following summarizes their bank reconciliation and necessary journal entries for May 31: 1) The bank reconciliation shows a correct cash balance of $5,127, which reconciles the $5,139 balance per books after deducting a $12 bank service charge. 2) Journal entries are needed to record the $1,290 credit memo collected by the bank, the $20 debit memo erroneously charged, and the $255 NSF check returned. 3) Corrections are also needed for the errors made in recording checks 609 and 613, and the unrecorded April bank service charge.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3

    III.

    Rose Company uses a calendar-year accounting period. The following information is available about
    the company's cash.

    Rose Company
    Bank Reconciliation

    Balance per bank statement P4,942


    Add: Deposit in transit 610
    Deduct: Outstanding checks
    No. 606 P177
    No. 607 248
    Correct cash balance P5,127

    Balance per books P5,139


    Deduct: Bank service charge 12
    Correct cash balance P5,127

    First National Bank


    General Account: Rose Company

    Date Debits Credits Credits


    4-30 4,942
    5-01 610 5,552
    5-02 177 5,375
    5-04 248 755 1,552 5,924
    5-05 437 5,487
    5-09 489 3,621 8,619
    5-12 705 1,986 9,900
    5-20 930 8,970
    5-22 423 8,547
    5-26 2,549 11,096
    5-29 255 NSF 10,841
    5-30 20 DM 5,798 5,023
    5-31 14 SC 1,290 CM 6,299
    Total debits 10,251 Total credits P11,608
    Legend: DM: Debit memo NSF: No sufficient funds check
    CM: Credit memo SC: Service charge

    Rose Company's Cash Account


    Taken from General Ledger
    Cash

    Balance, April 30 P 5,139 Cash Disbursement


    Cash Receipts Journal, May 31 P10,816
    Journal, May 31 10,583

    Information Taken from Rose Company

    Cash Receipts Journal


    Date Cash Debit
    5-03 P 1,552
    5-08 3,621
    5-12 1,986
    5-25 2,549
    5-31 875
    P10583

    Cash Payments Journal


    Date Check No. Cash Credit

    5-01 608 P 755


    5-03 609 473

    5-06 610 489


    5-11 611 705

    5-16 612 930

    5-21 613 243

    5-27 614 511

    5-29 615 5,798

    5-30 616 346

    5-31 617 566

    P10,816

    Additional Information:
    1. During May a collection charge of P20 that was applicable to Rosal Company was erroneously
    deducted by the bank from Rose Company's account.

    2. The credit memo shown on the bank statement relates to a note that the bank collected on Rose's
    behalf. The note had a face value of P1,200 and Rose earned interest of P90 during the current
    accounting period. The company has not yet recorded the collection.

    3. Rose failed to record the bank service charge for April (see April reconciliation).

    4. The NSF check shown on the bank statement had been received during May from a customer on
    account. The return of the check has not yet been recorded by Rose.

    5. Rose made two errors in recording cash payments during May:

    Actual Amount Amount


    Check No. of Check Recorded
    609 437 473
    613 423 243

    Check No. 609 was for delivery expense; check no. 613 was issued to purchase equipment.

    Required:

    1. Prepare a bank reconciliation dated May 31.


    2. Prepare the necessary journal entries.

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