Theories (10 points) Bank Service charge shown in the Bank statement 20,000

Multiple Choice: Choose the Letter of the correct answer. Error made by the ML company in recording the check that
cleared the bank in Dec. (check was drawn
A. Checking account F. Deposit in transit in Dec. for 100,000 but recorded 10,000) 90,000
B. Savings account G. Outstanding Check Deposit in transit 1,300,000
C. Time deposit H. Credit Memo
D. Bank reconciliation I. Debit Memo 2. Find the cash balance per bank statement, adjusted balance.
E. Bank Statement
C. Bobong Company account show the ff facts as of December 31,
1. A schedule that accounts for the differences between an entity’s 2018:
cash balance as shown on its bank statement and the cash
balance shown in its general ledger. Balance per bank statement, unadjusted 10,315,510
2. This are collection already recorded by the depositor as cash Deposit in transit December 9,849,830
receipts but not yet reflected on the bank statement. Petty cash fund established December 500,000
3. This item represents the decreasing balance of the bank but not Currency and coins counted on petty cash fund 412,560
yet recorded by the depositor as cash disbursement. Bank charges 2,970
4. This kind of bank deposit that is not interest bearing. Outstanding checks December 10,952,980
5. The depositor is given a passbook upon the initial deposits. Money market placement 100,000
Cash in bank per book, unadjusted 9,215,330
True or False: Write True if the statement is correct otherwise
False if not. 3. Find the adjusted cash in bank to be included in cash and cash
equivalent in the financial position.
6. Deposit in transit are deposits made and recognized by the bank
not in the book records. D. Sweetdreams Company’s bank statement for the month of
7. Outstanding checks are checks recorded by the bank but not yet December included the ff. information:
recognized by the book.
8. Note collected by the bank on behalf of the company can Balance per bank statement, unadjusted 2,800,000
considered a credit memo. Bank service charge 12,000
9. Disbursement recognized by the bank and not yet recorded by Interest collected by the bank for Sweetdreams 10,000
the book is a debit memo.
10. Errors committed by the book should be corrected in the In comparing the bank statement to its own cash records,
records of both the bank and the book. Sweetdreams Company found the ff.

Problem-solving (15 pts) Deposits made but not yet recorded by the bank 350,000
Checks written and mailed
Instructions: Solve the problem independently. Show your solution but not yet recorded by bank 650,000
and ENCIRCLE your final answer.
In addition, Sweetdreams Company discovered that it had drawn
A. Prepare the bank reconciliation assuming the ff data of Mario
and erroneously recorded a check for 46,000 that should have
Company for February 2018: been recorded for 64,000.
Deposit not recorded by the bank 15,000
Outstanding checks 25,000 4. What is the cash per ledger unadjusted?
Credit memo 20,000
NSF check 10,000 E. Quality Company has asked you to prepare a bank reconciliation
Bank service charge 5,000 statement for the month of April and has gathered the ff
Cash balance per book 80,000 information:

1. Find the correct cash balance to be reported on the financial  Balance per book was Php 104,000.
position.  A deposit of Php 45,000 was still in transit at April 30.
 NSF checks returned by the bank in April was Php 15,000
B. The ff. information pertains to Mobile Legends Company as of and April charges amounted to Php 2,000.
Dec. 31, 2018  Checked issued but not yet cleared by the bank in April 30
was Php 18,000.
Cash balance per Bank Statement 4,000,000  Proceeds from loan directly credited to Quality Company’s
Checks outstanding account amounted to Php 30,000, excluding the interest
(including certified checks of 100,000) 500,000 on deposits amounted to Php 3,000.
Customer note collected
by the bank for ML company 150,000 5. What is the Bank statement, unadjusted balance
NSF checks of customers returned by the bank 200,000