Problem 2-1 (Apathy Company) Required:

1. Prepare a bank reconciliation using ad

Apathy Company provided the following information: 2. Prepare adjusting entries.
Apathy Company
Date Check No. Withdrawal Deposits Balance
Dec. 2 100,000.00 100,000.00
18 104 10,000.00 90,000.00
20 101 5,000.00 85,000.00
22 106 25,000.00 60,000.00
27 50,000.00 110,000.00
29 10,000.00 120,000.00
29 103 40,000.00 80,000.00
29 CM 30,000.00 110,000.00
31 SC - DM 2,000.00 108,000.00

Cash in Bank - First Bank

Dec. 1 Deposit 100,000.00 Dec. 4 Check No. 101 5,000.00
21 Deposit 50,000.00 6 Check No. 102 15,000.00
27 Deposit 10,000.00 8 Check No. 103 40,000.00
31 Deposit 80,000.00 8 Check No. 104 10,000.00
240,000.00 10 Check No. 105 30,000.00
14 Check No. 106 25,000.00
28 Check No. 107 50,000.00
65,000.00 175,000.00

The credit made by the bank on December 29 represents the proceeds

of a note received from a customer which was given to the bank for
collection by the entity on December 26.
k reconciliation using adjusted balance method.
Problem 2-2 (Sensible Company) Required:
1. Prepare a bank reconcilia
Sensible Company provided the following ledger account of the cash in bank 2. Prepare adjusting entries
maintained with second bank.

Second Bank
Dec. 1 Balance 100,000.00 Dec. 1Check no. 771 20,000.00
6 Deposit 30,000.00 4 772 5,000.00
12 Deposit 40,000.00 6 773 35,000.00
24 Deposit 50,000.00 10 774 15,000.00
31 Deposit 60,000.00 14 775 30,000.00
280,000.00 18 776 25,000.00
24 777 40,000.00
110,000.00 170,000.00

The following bank statement was received from the Second Bank by Sensible Company.
Date Checks Deposits Balance
Dec. 1 Balance 130,000.00
Check No. 768 10,000.00
1 771 20,000.00
4 772 5,000.00 *NSF Check - example of D
6 773 35,000.00 30,000.00
12 774 15,000.00 40,000.00
12 776 52,000.00
24 1042 8,000.00 50,000.00
28 NSF Check 10,000.00 45,000.00 CM
28 ervice Charge 5,000.00 135,000.00

Other Information
1. Sensible Company reconciled its bank balance on November 30 with 2
checks, No. 768 for P10,000 and No. 770 for P20,000 outstanding. - bank recon

2. Check no. 1042 was drawn by Sensitive Company.

The bank charged it in error to the account of Sensible Company. - bank recon

3. Check no. 776 was correctly drawn for P52,000 in payment account.
The amount P25,000 was entered in the books of original entry. - book recon

4. The bank credit on December 28 represents the proceeds of a P50,000 note,

less collection fee of P5,000 collected by the bank and credited to the account.
5. The NSF check was received from a customer in payment of account.
Prepare a bank reconciliation statement on December 31.
Prepare adjusting entries on December 31.

SF Check - example of DM
Problem 2-3 (Xanthous Company)
Book Reconciling Items, & they are NOT la
Required: Bank Reconciling Items, & they are NOT la
1. Required a bank reconciliation statement on Feb. 28.
2. Prepare adjusting entries on Feb. 28.

Book Balance 2,840,000.00

Add: Credit Memos 270,000.00
Total 3,110,000.00
Less: Debit Memos (5,000.00)
Adjusted Book Balance 3,105,000.00

Bank Balance 3,265,000.00

Add: Deposits in Transit 450,000.00
Total 3,715,000.00
Less: Outstanding Checks 116 60,000.00
122 180,000.00
124 120,000.00
125 250,000.00 610,000.00
Adjusted Bank Balance 3,105,000.00
Items, & they are NOT labeled on the problem - compare your bank statement to ledger.
Items, & they are NOT labeled on the problem - compare your ledger to bank statement.
Problem 2-5 (Zodiac Company) - Book to Bank

Required:
1. Required a bank reconciliation statement using Book to Bank on April 30.
2. Prepare adjusting entries on April 30.

Book Balance 1,100,000.00

Add: Credit Memos 60,000.00
Outstanding Checks 1331 40,000.00
1332 30,000.00
1334 60,000.00
1335 10,000.00 140,000.00

Less: Debit Memos (30,000.00)

Deposits in Transit (270,000.00)
Bank Balance - April 30 1,000,000.00
DIT 270,000.00
OC (140,000.00)
Adjusted Cash in Bank 1,130,000.00

Bank to Book Approach

Bank Balance 1,000,000.00
Add: Deposits in Transit 270,000.00
Debit Memos 30,000.00

Less Outstanding Checks 1331 40,000.00

1332 30,000.00
1334 60,000.00
1335 10,000.00 (140,000.00)
Credit Memos (60,000.00)
Book Balance 1,100,000.00
Problem 2-13 (Timex Company)

Book Balance 2,120,000.00 workback

Add: Credit Memos 500,000.00
435,000.00 935,000.00
Total
Less: Debit Memos 5,000.00
50,000.00 (55,000.00)
Adjusted Book Balance 3,000,000.00

Bank Balance 3,070,000.00 workback

Add: Deposits in Transit 450,000.00
180,000.00 630,000.00
Total
Less: Outstanding Checks (700,000.00)
Adjusted Bank Balance 3,000,000.00
Problem 3-9 (Humanizer Company)

Outstanding Checks - beginning of month 100,000.00

Add: Checks drawn by depositor during the month 2,500,000.00
Total checks to be paid by bank 2,600,000.00
Less: Checks paid by bank during month (2,200,000.00)
Outstanding Checks - end of month 400,000.00

Deposits in Transit - beginning of month 300,000.00

Add: Cash receipts deposited during the month 1,800,000.00
Total deposits to be acknowledged by bank 2,100,000.00
Less: Deposits acknowledged by bank during month (1,600,000.00)
Deposits in Transit - end of month 500,000.00

Book Balance 2,100,000.00

Add: Credit Memos 550,000.00
Less: Debit Memos (50,000.00)
(100,000.00)
Adjusted Book Balance 2,500,000.00

Bank Balance 2,400,000.00

Add: Deposits in Transit 500,000.00
Less: Outstanding Checks (400,000.00)
Adjusted Bank Balance 2,500,000.00
Problem 3-11 (Lovable Company)

Balance per Bank - beginning of month 3,000,000.00

Add: Bank credits during the month 9,000,000.00
Total ###
Less: Bank debits during the month ###
Balance per Bank - end of month 5,000,000.00
Add: Deposits in Transit 1,000,000.00
Total 6,000,000.00
Less: Outstanding Checks (600,000.00)
Adjusted Bank Balance 5,400,000.00

Book Balance 5,350,000.00 workback

Add: Credit Memos 200,000.00
5,550,000.00
Total
Less: Debit Memos 140,000.00
10,000.00 (150,000.00)
Adjusted Book Balance 5,400,000.00

Deposits in Transit - beginning of month 400,000.00 given

Add: Cash receipts deposited during the month 9,400,000.00
Total deposits to be acknowledged by bank 9,800,000.00 workback
Less: Deposits acknowledged by bank during month 8,800,000.00 deduct the CM.
Deposits in Transit - end of month 1,000,000.00 given

Outstanding Checks - beginning of month 900,000.00 given

Add: Checks drawn by depositor during the month 6,550,000.00
Total checks to be paid by bank 7,450,000.00 workback
Less: Checks paid by bank during month 6,850,000.00 deduct the DM.
Outstanding Checks - end of month 600,000.00 given
duct the CM.

duct the DM.

Problem 3-5 (Efficient Company)

Proof of Cash - Adjusted Balance Method April 30

March 31 Receipts Disbursements April 30
Balance per book 200,000.00 800,000.00 720,000.00 280,000.00
Note Collected
March 60,000.00 (60,000.00)
April 100,000.00 100,000.00
NSF Check
March (20,000.00) (20,000.00)
April 30,000.00 (30,000.00)
Service Charge
March (8,000.00) (8,000.00)
April 2,000.00 (2,000.00)
Adjusted Book Balance 232,000.00 840,000.00 724,000.00 348,000.00 348,000.00

April 30
March 31 Receipts Disbursements April 30
Balance per Bank 330,000.00 700,000.00 530,000.00 500,000.00
Deposits in Transit
March 80,000.00 (80,000.00)
April 220,000.00 220,000.00
Outstanding Checks
March (178,000.00) (178,000.00)
April 372,000.00 (372,000.00)
Adjusted Bank Balance 232,000.00 840,000.00 724,000.00 348,000.00
232,000.00 840,000.00 724,000.00 348,000.00

Proof of Cash - Book to Bank Method April 30

March 31 Receipts Disbursements April 30
Balance per book
Note Collected
March
April
NSF Check
March
April
Service Charge
March
April
Deposits in Transit
 March
April
Outstanding Checks
March
April
Balance per Bank 0.00 0.00 0.00 0.00

Proof of Cash - Bank to Book Method

March 31 Receipts Disbursements April 30
Balance per Bank
Deposits in Transit
March
April
Outstanding Checks
March
April
Note Collected
March
April
NSF Check
March
April
Service Charge
March
April
Balance per Book 0.00 0.00 0.00 0.00