BSA Company provided the following data for the month of December:

Nov 30 Dec 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
Bank service charge……………………………………….. 2,000 4,000
Check erroneously charged by bank against entity’s
Account and corrected in subsequent month 40,000 50,000
Note recorded as cash receipt by entity when placed with
bank for collection & note is actually collected by bank in
subsequent month & credited by bank to
entity’s account in same month 200,000 300,000

Required:

a. Prepare a four column reconciliation using adjusted balances

b. Prepare the necessary journal entries
 BSA Company
Proof of Cash
For the Month of December

November 30 Receipts Disbursements December 31

Cash in bank balance P 2,032,000 P 2,568,000 P 1,440,000 P 3,160,000
Note recorded as cash
receipt by entity when
placed with bank for
collection
November (200,000) 200,000
December (300,000) (300,000)
Bank Service Charge
November (2,000) (2,000)
December 4,000 (4,000)
Adjusted Book Balance P 1,830,000 P 2,468,000 P 1,442,000 P 2,856,000

November 30 Receipts Disbursements December 31

Bank Statement Balance P 1,890,000 P 2,090,000 P 1,080,000 P 2,900,000
Deposit in Transit
November 80,000 (80,000)
December 498,000 498,000
Erroneous Check
November 40,000 (40,000)
December (50,000) 50,000
Outstanding Check
November (180,000) (180,000)
December 592,000 (592,000)
Adjusted Bank Balance P 1,830,000 P 2,468,000 P 1,442,000 P 2,856,000

Adjusting Entries:
Dec.31 Notes Receivable P 300,000
Bank Service Charge 4,000
Cash in Bank P 304,000