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    Cfas Bsa1b Bank Recon Activity

    Uploaded by

    Kristan Esteban
    The document contains three bank reconciliation problems with adjustments. For problem 1, the adjusted book and bank balances are both $4,015,000. For problem 2, the adjusted balances are $5,326,000. Problem 3 lists adjusted balances of $1,240,000. Each problem provides details of additions and subtractions to arrive at the adjusted balances and reconciles the cash accounts.

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    Cfas Bsa1b Bank Recon Activity

    Uploaded by

    Kristan Esteban
    114 views4 pages
    The document contains three bank reconciliation problems with adjustments. For problem 1, the adjusted book and bank balances are both $4,015,000. For problem 2, the adjusted balances are $5,326,000. Problem 3 lists adjusted balances of $1,240,000. Each problem provides details of additions and subtractions to arrive at the adjusted balances and reconciles the cash accounts.

    Original Description:

    Conceptual Framework and Accounting Standards Bank Reconciliation

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    The document contains three bank reconciliation problems with adjustments. For problem 1, the adjusted book and bank balances are both $4,015,000. For problem 2, the adjusted balances are $5,326,000. Problem 3 lists adjusted balances of $1,240,000. Each problem provides details of additions and subtractions to arrive at the adjusted balances and reconciles the cash accounts.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    114 views4 pages

    Cfas Bsa1b Bank Recon Activity

    Uploaded by

    Kristan Esteban
    The document contains three bank reconciliation problems with adjustments. For problem 1, the adjusted book and bank balances are both $4,015,000. For problem 2, the adjusted balances are $5,326,000. Problem 3 lists adjusted balances of $1,240,000. Each problem provides details of additions and subtractions to arrive at the adjusted balances and reconciles the cash accounts.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 4

    KRISTEL AN TECSON LAMORENA BS ACCOUNTANCY I

    BLOCK B - BANK RECONCILIATION MARCH 11, 2021

    PROBLEM 2-7
    a. Prepare a bank reconciliation using the adjusted balance approach

    Balance per book 2,700,000


    Add: Proceeds of bank loan 940,000
    Notes collected by the bank 435,000 1,375,000
    Total 4,075,000
    Less: Service charge 10,000
    Customer’s check charged back 50,000 (60,000)

    Adjusted book balance 4,015,000

    Balance per bank 4,000,000


    Add: Deposit in transit 475,000
    Incorrect deposit 90,000
    Erroneous bank charge 150,000
    Erroneous debit memo 200,000 915,000
    Total 4,915,000
    Less: Outstanding Checks 600,000
    Erroneous bank credit 300,000 (900,000)

    Adjusted bank balance 4,015,000


    b. Prepare adjusting entries on Dec. 31

    1. Cash in bank 1,375,000


    Bank service charge 5,000
    Interest expense (60,000x1/6) 10,000
    Prepaid interest expense 50,000
    Loan Payable 1,000,000
    Notes Receivable 400,000
    Interest income 40,000
    2. Bank service charge 10,000
    Accounts receivable 50,000
    Cash in bank 60,000

    PROBLEM 2-8
    a. Prepare bank reconciliation on Dec. 31

    Balance per book 5,000,000


    Add: Proceeds of the bank loan 516,000
    Total 5,516,000
    Less: Understatement of check of payment of acc.
    (200,000-20,000) 180,000
    Petty cash fund 10,000 (190,000)

    Adjusted book balance 5,326,000

    Balance per bank 5,500,000


    Add: Undeposited collection 300,000
    Erroneous bank charge 50,000
    Deposit omitted from bank statement 150,000 500,000
    Total 6,000,000
    Less: Erroneous bank credit 130,000
    Outstanding checks 544,000 (674,000)

    Adjusted bank balance 5,326,000


    b. Prepare one journal entry only necessary to adjust the cash account.

    Cash in bank 326,000


    Interest expense (84,000x1/12) 7,000
    Prepaid interest expense 77,000
    Accounts Payable 180,000
    Petty cash fund 4,000
    Supplies 2,000
    Transportation 3,000
    Postage 1,000
    Loan payable (516,000/86%) 600,000

    PROBLEM 2-9
    a. Prepare a bank reconciliation on Aug. 31 using the adjusted balance method.

    Balance per book 1,300,000


    Add: Overstatement of check no. 765 20,000
    Check no. 555 stopped for payment 10,000 30,000
    Total 1,330,000
    Less: Service charge 5,000
    NSF check 85,000 (90,000)

    Adjusted book balance 1,240,000


    Balance per bank 1,200,000
    Add: Undeposited collection 275,000
    Total 1,475,000
    Less: Outstanding checks:
    No. 761 55,000
    762 40,000
    763 25,000
    764 65,000
    765 50,000 (235,000)

    Adjusted bank balance 1,240,000

    b. Prepare adjusting entries to correct the cash in bank account on August 31.

    1. Cash in bank 30,000


    Accounts payable 20,000
    Miscellaneous income 10,000

    2. Bank service charge 5,000


    Accounts receivable 85,000
    Cash in bank 90,000

    3. Receivable from cashier 40,000


    Accounts receivable 30,000
    Sales discounts 10,000

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