Zodiac Company provided the following information:

Balance per book, March 31 800,000

Cash receipts for April 4,100,000
Cash Disbursements for April 3,800,000
Outstanding checks as of April 30 of which No. 1333 had been certified:
No. 1331 40,000
No 1332 30,000
No. 1333 50,000
N0. 1334 60,000
No. 1335 10,000
April debit memos were:
For bank service charge 5,000
For NSF check 25,000
April credit memos for note
collected by bank in the name of Zodiac Company 60,000
Undeposited collections 270,000
Balance per bank, April 30 1,000,000

Required:
Prepare a bank reconciliation on April 30 following the book to bank approach and prepare adjusting entries.
 Adjusting Entries:

A. To record the note collected by bank.

Cash in Bank 60,000
Notes Receivable 60,000

B. To record the bank service charge

Bank Service Charge 5,000
Cash in Bank 5,000

C. To record the NSF check

Accounts Receivable 25,000
Cash in bank 25,000

Book to Bank Method:

ZODIAC COMPANY
Bank Reconciliation
usting entries. Apr-30
Balance per book 1,100,000
Add: Note Collected 60,000
Outstanding Check 140,000 200,000
Total: 1,300,000
Less: NSF Check 25,000
Service Charge 5,000
Deposit in Transit 270,000 300,000
Balance per Bank 1,000,000
 Radian Company provided the following data for the month of January:

Balance per bank statement, January 31 3,500,000

Collections on January 31 but undeposited 550,000
NSF check received from a customer returned by the bank
on February 5 with the January bank statement 50,000
Checks outstanding on January 31 650,000
Bank debit memo for safety deposit box
rental not recorded by debitor 5,000
A creditor’s check for 30,000 was incorrectly
recorded in the depositor’s book as 300,000
A costumer’s check for 200,000 was incorrectly `
recorded in the depositor’s book as 20,000
The depositor neglected to make an entry in its
books for a check drawn in payment of an accounts payable 125,000

Required:
Compute the balance in the cash account before corrections and prepare adjusting entries.
 Radiant Company
Bank Reconciliation
Jan-31

Balance per Bank 3,500,000

Add: Deposit in Transit 550,000
NSF Check 50,000
Service charge 5,000
Unrecorded Check 125,000 730,000
Total 4,230,000
Less: Outstanding Check 650,000
Overstatement Check 270,000
Understatement Check 180,000 1,100,000
Book balance 3,130,000

Adjusting Entries:

Cash in Bank 450,000

Accounts Receivable 180,000
Accounts Payable 270,000

Accounts Receivable 50,000

Bank service charge 5,000
Accounts Payable 125,000
Cash in Bank 180,000
 Rancor company provided the following information for the month of December.

Balance per bank statement 4,000,000

Balance per cash book 2,700,000
Outstanding checks 600,000
Deposit in transit 475,000
Service charge 10,000
Proceeds of Bank loan, December 1,
discounted for 6 months at 12%, not
recorded on company books 940,000
Customer’s check charged by the bank for
absence of counter signture 50,000
Deposit of 100,000 incorrectly recorded by bank as 10,000
Check of Rancid Company charged by bank against Rancor Company 150,000
Customer’s note collected by bank in favor of Rancor Company.
Face 400,000
Interest 40,000
Total 440,000
Collection Fee 5,000 435,000
Erroneous debit memo of December 28, to charge company’s
account with settlement of bank loan 200,000
Deposit of Rancid Company Credited to Rancor Account 300,000

Require:
Prepare a bank reconciliation using the adjusted balance approach.
Prepare adjusting entries on December 31.
ber.

Rancor Company
Bank Reconciliation
Dec-31

Balance per book 2,700,000

Add: Proceeds of Bank Loan 940,000
Notes collected by bank 435,000 1,375,000
Total: 4,075,000
Less: Technically Defective Checks 50,000
Bank Service Charge 10,000 60,000
Adjusted book balance 4,015,000
Balance per bank 4,000,000
Add: Deposit in Transit 475,000
Incorrect deposit 90,000
Erroneous bank charge 150,000
Erroneous debit memo 200,000 915,000
Total: 4,915,000
Less: Outstanding check 600,000
Erroneous bank credit 300,000 900,000
Adjusted bank balance 4,015,000

Adjusting Entries:

Cash in Bank 940,000

Loans Payable 940,000

Cash in Bank 435,000

Notes Receivable 435,000

Accounts Receivable 50,000

Cash in Bank 50,000

Bank Service Charge 10,000

Cash in Bank 10,000
Alpha Company provided the following information for the month of December:

Cash Balance per ledger 5,000,000

Cash Balance per bank statement 5,500,000
Proceeds of bank loan discounted on
December 1 for one year at 14% 516,000
Undeposited collections on December 31 300,000
Check of Omega Company had been incorrectly
deducted by bank from Alpha Company account 50,000
Check of Alpha Company in payment of an account payable
had been recorded by the depositor as 20,000. The correct is 200,000
The ledger account for cash was the only cash account
kept by the entity.
It included a petty cash account comprised of the ff:
Currency and Coin 4,000
Supplies 2,000
Transportation 3,000
Postage 1,000
10,000
Deposit of Omega Company credited by bank
to the account of Alpha Company 130,000
Deposit of December 27 omitted from Bank 150,000
Outstanding Checks 544,000

Required:
Prepare a bank reconciliation on December 31
Prepare a journal entry only necessary to adjust the cash account
 Alpha Company
Bank Reconciliation
Dec-31

Balance per book 5,000,000

Add: Proceeds of bank loan 516,000
Total: 5,516,000
Less: Understatement check 180,000
Petty cash fund 10,000 190,000
Adjusted book balance 5,326,000
Balance per bank 5,500,000
Add: Deposit in transit 300,000
Erroneous bank charge 50,000
Omitted Deposit 150,000 500,000
Total: 6,000,000
Less: Outstanding checks 544,000
Erroneous Credit 130,000 674,000
Adjusted bank balance 5,326,000

Adjusting Entries:

Cash in Bank 516,000

Loans Payable 516,000

Accounts Payable 180,000

Cash in Bank 180,000

Petty cash fund 10,000

Cash in Bank 10,000
Pathetic Company revealed the following facts on August 31:

Balance of cash in bank account 1,300,000

Balance of bank statement 1,200,000
Outstanding Checks, August 31:
Number 555 10,000
761 55,000
762 40,000
763 25,000
764 65,000
765 70,000
Receipts of August 31, deposited September 1 275,000
The bank statement showed the following charges:
Service charge for August 5,000
NSF check received from a customer 85,000

1. The cashier-bookkeper had misappropriated 30,000 and an additional 10,000

by charging sales discount and crediting accounts receivable.
2. The stub for check number 765 and the invoice relating thereto show that it was for 50,000.
3. The check was recorded incorrectly in the cash disbursement journal as 70,000. The check
was drawn in payment of an account payable.
4. Payment has been stopped on check number 555 which was drawn in payment of an account payable.
The payee cannot be located.

Required:
Prepare a bank reconciliation on August 31 using the adjusted balance method
Prepare adjusting entries to correct the cash in bank account on August 31
 Pathethic Company
Bank Reconciliation
Aug-31

Balance per book 1,300,000

Add: Overstatement check 20,000
Reversal of check No. 555 10,000 30,000
Total: 1,330,000
Less: Service Charge 5,000
NSF check 85,000 90,000
Adjusted book balance 1,240,000
Balance per bank 1,200,000
Add: Deposit in Transit 275,000
Total: 1,475,000
Less: Outstanding Check No: 761 55,000
No. 762 40,000
No. 763 25,000
No. 764 65,000
No. 765 50,000 235,000
Adjusted bank balance 1,240,000

Adjusting Entries:

Cash in bank 30,000

Accounts Payable 20,000
Miscellaneous Income 10,000

Bank service Charge 5,000

Cash in bank 5,000

NSF check 85,000

Cash in Bank 85,000

Receivable from cashier 40,000

Sales Discount 10,000
Accounts Receivable 30,000