Fundamentals in Accounting, Business and Management 2

Topic: Bank Reconciliation (Practice Problems)

PROBLEM 1

The Accountant of NARCISA Co. provided the following data in reconciling the April 30 cash in bank balance.

Balance per bank, April 30 P 130, 350

Balance per books, April 30 85,000

Service Charge 2,000

Deposits in transit 49,000

Outstanding Checks 17, 650

Note collected by bank including 11, 200 interest (Narcisa Co. not yet informed) 136, 000

Check drawn by XYZ Co. erroneously charge by bank to Narcisa’s account 54, 600

A transposition error was made in recording a sale and deposit in sales journal and cash receipts journal in April.

Correct amount 13, 658 Recorded as 16, 358

1.) Prepare a bank reconciliation statement using an unadjusted to adjusted format of bank and book cash balance
on April 30.

2.) Provide journal entries to correct the cash balance.

PROBLEM 2

In preparing its bank reconciliation at December 31, 2020, Case Company has made available the following data:

Balance per bank statement 3, 800 000

Deposit in transit 520,000

Amount erroneously credited by bank to Case’s account 40,000

Bank service charge for December 5, 000

Outstanding Checks 675, 000

Compute for the adjusted cash in bank balance for December 2020.
PROBLEM 3:

In an audit of Mindanao Company as of December 31, 2020, the following data are gathered: Unadjusted book
balance 1,000,000

Bank Charges 3, 000

Outstanding checks 235, 000

Deposit in transit 300,000

Customers note collected by bank 375, 000

Interest on customer’s note 15, 000

Customer’s check returned NSF 62, 000

Compute for the adjusted book balance on December 31, 2020.

BANK RECONCILIATION: BANK TO BOOK FORMAT PROBLEM

PROBLEM 5

The information below relates to CHARMAINE COMPANY’S cash in bank:

Balance per bank statement, December 31, 2020 P 27,910

Collections recorded but not yet deposited in bank 1, 950

NSF check- not recorded in the books nor redeposited 2, 000

Bank service charge not recorded 40

Note collected by bank and not recorded on books 2, 800

Outstanding checks 3, 000

Compute for the correct cash balance in the books of CHARMAINE Company in December 31, 2020 is?

PROBLEM 6

The following information pertains to a checking account of a Company at June 30, 2020.

Balance per bank statement 200, 000

Interest earned for the second quarter 500

Outstanding checks 15, 000

Customers check returned for insufficient funds 5, 000

Deposit in transit 25, 000

Compute for the book balance on June 30, 2020 using the bank to book format of bank reconciliation.