ACTIVITY 4

Given are the following: The January reconciliation, and parts of the bank statement,
cash receipts journal, and cash payments journal of Pabahay Catering Services.
Based on these, prepare the February 28 bank reconciliation statement and the
corresponding adjusting entry on the books of Pabahay Catering services
Pabahay Catering Services
Bank Reconcilation Statement – Equal Bank
January 31, 2010

Balance per cash books P45,345.00

Less: Bank service charge for January 125.00
Adjusted balance per cash books P45,220.00

Balance per bank statement P36,550.25

Add: Undeposited collections, January 31 10,500.00
P47,050.25
Less: Outstanding check
 Check No. 121235 P997.75
 Check No. 121241 600.00
 Check No. 121242 232.50 1,830.25
Adjusted balance per bank statement P45,220.00

A part of the statement received from bank shows the transactions of February

CHECKS
Amount Amount Deposits Date Balance
36,550.25
February
10,500.00 1 47,050.25
997.7
121244 4,541.00 121235 5 12,125.00 2 53,636.50
52,445.50 4 106,082.00
121246 7,821.00 4,250.00 7 102,511.00
600.0
121241 0 121245 3,875.15 3,462.50 9 101,498.35
121248 6,125.00 3,142.00 14 98,515.35
121251 24,525.00 121252 2,990.45 12,120.00 16 83,119.90
18,758.00 21 101,877.90
121255 12,542.00 121256 11,223.00 23 78,112.90
121253 2,245.00 24 75,867.90
121258 12,525.00 121247 1,110.00 3,757.25 25 65,990.15
14,686.00 28 80,676.15
Service 100.0
Charge 0 28 80,576.15
 The following are parts of the Cash Receipts Journal and Cash Payments
Journal of Pabahay Catering Service

CASH RECEIPTS JOURNAL CASH PAYMENTS JOURNAL

OR DEBIT Dat Check CREDIT Cash in
Date No. Cash in Bank e No Bank
Service
1 588 12,125.00 1 Charge 125.00
3 589 52,445.50 1 121244 4,541.00
4 590 4,250.00 2 121245 3,875.15
8 591 3,275.00 5 121246 7,821.00
8 592 187.50 8 121247 1,110.00
11 593 3,142.00 10 121248 6,125.00
15 594 12,120.00 10 121249 975.75
18 595 10,000.00 12 121250 888.40
18 596 8,758.00 15 121251 24,525.00
22 597 425.75 15 121252 2,990.45
24 598 3,331.50 17 121253 2,245.00
25 599 1,234.00 18 121254 725.50
26 600 13,452.00 21 121255 12,542.00
28 601 4,250.00 21 121256 11,223.00
28 602 8,914.00 22 121257 8,753.50
137,910.25 25 121258 12,525.00
28 121259 24,522.00
125,512.75

Instructions:
a) Prepare the bank reconciliation dated February 28, 2010 proceeding to
correct balance
b) Prepare any entries necessary to make the books correct and complete
c) What amount of cash should be reported in the August 31, balance sheet

Pabahay Catering Services

Bank Reconciliation
February 28, 2020

Balance per book 57,742.50

Bank service charge (100.00)
Adjusted balance per book 57,642.50

Balance per bank 80,576.15

Add Deposits in transit ( 4250 + 8914) 13,164.00
Outstanding checks
(232.50 +975.75+888.40+725.50 + 8753.50 + 24,522) (36,097.65)
Adjusted balance per bank 57,642.50
 Date Description PR Debit Credit
Feb 28