Problem 1

Billionaire Corporation
Proof of Cash
For the month ended of September 30, 2016

August 31, 2016 Receipts Disbursements September 30, 2017

Balance per Bank ₱684,000 ₱4,987,800 ₱2,118,180 ₱3,553,620
Deposits in Transit:
August ₱51,000 (₱51,000)
September ₱228,000 ₱228,000
Outstanding Checks:
August (₱57,300) (₱57,300)
September ₱918,000 (₱918,000)
Bank Error:
August ₱72,000 (₱72,000)
September (₱486,000) (₱486,000)
Adjusted Bank
Balance ₱749,700 ₱4,606,800 ₱2,492,880 ₱2,863,620

August 31, 2016 Receipts Disbursements September 30,2017

Balance per Book ₱690,000 ₱4,594,800 ₱2,456,460 ₱2,828,340
Note Collected:
August ₱60,000 (₱60,000)
September ₱72,000 ₱72,000
Bank Service Charge:
August (₱300) (₱300)
September ₱720 (₱720)
Unrecorded Check
no. 008915 ₱36,000 (₱36,000)
Adjusted Book
Balance ₱749,700 ₱4,606,800 ₱2,492,880 ₱2,863,620

Adjusting Entries:
Cash in Bank ₱72,000 Bank Service Charge ₱720
Notes Receivable ₱72,000 Cash In Bank ₱720

Accounts Payable ₱36,000

Cash in Bank ₱36,000
Deposits in Transit

Deposits in Transit- August 31, 2016 ₱51,000

Add: Cash Receipts deposit during September:
Book Debits ₱4,594,800
Less: August Bank Credit (₱60,000)
Bank Loan (₱291,000) ₱4,243,800
Total ₱4,294,800
Less: Deposits acknowledged by bank in September:
Bank Credits ₱4,987,800
Less: Note Collected (₱72,000)
Bank Loan (₱291,000)
August Error (₱72,000)
Error Correction (₱486,000) (₱4,066,800)
Deposits in Transit- September 30, 2016 ₱228,000

Outstanding Checks

Outstanding Checks- August 31, 2016 ₱57,300

Add: Checks drawn by depositor during September:
Book Credits ₱2,456,460
Add: Unrecorded Check no. 008915 ₱36,000
Less: Customer NSF Check (₱7,800)
August Service Charge (₱300)
September Service Charge (₱360) ₱2,484,000
Total ₱2,541,300
Less: Checks Paid by bank during September:
Bank Debits ₱2,118,180
Less: Error Correction (₱486,000)
Customer NSF Check (₱7,800)
Bank Service Charge (₱1,080) ₱1,623,300
Outstanding Checks- September 30, 2016 ₱918,000