Entity A is preparing its February 28, 20x1 bank reconciliation statement.

The following information was

determined:
 Cash balance per accounting books, Feb. 28, 20x1 ₱260,000
 Cash balance per bank statement, Feb. 28, 20x1 ₱205,000
 
When investigating the difference, the accountant determined the following:
a. A customer deposited ₱30,000 to Entity A’s bank account as payment for an account receivable. This is not
yet recorded in the books of accounts.
b. A ₱102,500 check deposited by Entity A during the month is not yet credited to Entity A’s account.
c. A check drawn in the amount of ₱22,500 is not yet presented to the bank for payment.
d. The bank returned a check deposit amounting to ₱5,000 because of insufficiency in the funds of the drawer.
The check was received from a customer as payment for accounts receivable.
The net adjustment to the CASH  account includes a debit (credit) of _____
The net adjustment to the ACCOUNTS RECEIVABLE  account includes a debit (credit) of _____
What is the reconciled balance of cash? _____
Response:
Response:
Response: 285000
Correct answer: 25000, (25000), 285000

Item 2
Entity A is preparing its March 31, 20x1 bank reconciliation. The following information was determined:
 The cash balance per books is ₱280,000.
 Credit memo – ₱20,000
 Debit memo – ₱15,000
 Deposits in transit – ₱75,000
 Outstanding checks – ₱25,000
 The disbursements per books are overstated by ₱45,000.
 The bank debits are understated by ₱40,000.
After bank reconciliation, the reconciled balance of cash in bank is P330,000
 
What was the cash balance per bank statement? _____
 
Response: 320000
Correct answer: 320000

Item 3
 These are deductions made by the bank to the depositor’s bank account but not yet recorded by the depositor.
Response: Debit memos (DM)
Correct answer: Debit memos (DM)

Item 4
 Which of the following is not a debit memo?
Response: Direct deposits of customers to the depositor’s account
Correct answer: Direct deposits of customers to the depositor’s account

Item 5
Entity A is preparing its November 30, 20x1 bank reconciliation statement. The following information was
determined:
  Cash balance per accounting books, Nov. 30, 20x1 ₱600,000
 Cash balance per bank statement, Nov. 30, 20x1 ₱860,000
 Credit memo ₱380,000
 Debit memo ₱  60,000
 Deposits in transit ₱100,000
 Outstanding checks ₱  40,000
Compute the reconciled balance of cash in bank. _____
DO NOT USE COMMA OR PESO SIGN IN YOUR ANSWER.
 
Response: 920000
Correct answer: 920000

Item 6
 Which of the following is added to the cash balance per bank statement when preparing a bank reconciliation
statement?
Response: Deposit in transit
Correct answer: Deposit in transit

Item 7
Red Corporation records the showed the following:

Outstanding checks, November 30 P     90,000

Customer's NSF check returned in November and recorded in December 6,000

Service charges made by the bank in November and recorded in December 2,400

Total credits to the cash account in all journal during December 190,400

Checks and charges returned by bank in December including a December service charge 195,000
of P3,000 and NSF check of P12,000

Book debit error in November and corrected in December 3,000

  What is the amount of outstanding checks as of December 31?  _____

Do not use comma and peso sign in your answer.
Response: 120000
Correct answer: 89000

Item 8
The following information was revealed in trying to reconcile the bank statement balance as of June 30
with the client's records as of the same date:
 Total credits per June bank statement were P310,000.
 Among the bank credits in May was a customer's note collected by the bank for the account of the
company which the company recognized in June. Proceeds were P30,300.
 Client books for June showed receipts of P420,000.
 Deposits in transit on May 31 were P15,000.
 The bank credited the client's account in June for P50,000 representing loan approved and granted
by the bank. Your client has not recorded this yet.
 A deposit of P4,300 was recorded by your client as P3,400 in June. The bank recorded the deposit
at its correct amount.
How much were deposits in transit as of June 30? _____
Do not use comma and peso sign in your answer.
Response: [none]
Correct answer: 145600

Item 9
 Which of the following is added to the cash balance per books when preparing a bank reconciliation statement?
Response: Credit memo
Correct answer: Credit memo

Item 10
 These are checks drawn and released to payees but are not yet encashed with the bank.
Response: Outstanding checks (OC)
Correct answer: Outstanding checks (OC)

Item 11
 Which of the following represents a debit memo?
Response: Interest expense on a loan that is directly deducted from the depositor’s account.
Correct answer: Interest expense on a loan that is directly deducted from the depositor’s account.

Item 12
 These are additions made by the bank to the depositor’s bank account but not yet recorded by the depositor.
Response: Credit memos (CM)
Correct answer: Credit memos (CM)

Item 13
 As an internal control, bank reconciliation statements are usually prepared
Response: on a monthly basis.
Correct answer: on a monthly basis.

Item 14
 It is a report that is prepared for the purpose of bringing the balances of cash per records and per bank statement
into agreement.
Response: Bank reconciliation
Correct answer: Bank reconciliation

Item 15
 These are deposits made but not yet credited by the bank to the depositor’s bank account.
Response: Deposits in transit (DIT)
Correct answer: Deposits in transit (DIT)