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I. COMPREHENSIVE PROBLEMS 1. In reconciling the cash balance on December 31 with that shown in the bank statement, Sam Company provided the following information. 4,000,000 2,700,000 600,000 475,000 10,000 Balance per bank statement Balance per book Outstanding checks Deposit in transit Service charge Proceeds of bank loan, December 1, discounted for 6 months at 12%, not recorded on Sam Company Customer check charged back by bank for absence of counter signature Deposit of P100,000 incorrectly recorded by bank as Check of Sim Company charged by bank against Sam account 940,000 50,000 10,000 150,000 Customer's note collected by bank in favor of Sam Company. Face 400,000 40,000 440,000 5,000 Interest Total Collection fee Erroneous debit memo of December 28 435,000 to charge Sam account with settlement of bank loan 200,000 300,000 Deposit of Sim Company credited to Sam account Required: Prepare a bank reconciliation under the adjusted balance method. Make adjusting entries.

I. COMPREHENSIVE PROBLEMS 1. In reconciling the cash balance on December 31 with that shown in the bank statement, Sam Company provided the following information. 4,000,000 2,700,000 600,000 475,000 10,000 Balance per bank statement Balance per book Outstanding checks Deposit in transit Service charge Proceeds of bank loan, December 1, discounted for 6 months at 12%, not recorded on Sam Company Customer check charged back by bank for absence of counter signature Deposit of P100,000 incorrectly recorded by bank as Check of Sim Company charged by bank against Sam account 940,000 50,000 10,000 150,000 Customer's note collected by bank in favor of Sam Company. Face 400,000 40,000 440,000 5,000 Interest Total Collection fee Erroneous debit memo of December 28 435,000 to charge Sam account with settlement of bank loan 200,000 300,000 Deposit of Sim Company credited to Sam account Required: Prepare a bank reconciliation under the adjusted balance method. Make adjusting entries.

Financial Accounting
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter8: Sarbanes-oxley, Internal Control, And Cash
Section: Chapter Questions
Problem 18E
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Prepare a bank reconciliation under the adjusted balance method. Make adjusting entries.

I. COMPREHENSIVE PROBLEMS 1. In reconciling the cash balance on December 31 with that shown in the bank statement, Sam Company provided the following information. Balance per bank statement Balance per book Outstanding checks Deposit in transit Service charge Proceeds of bank loan, December 1, discounted for 6 months at 12%, not recorded on Sam Company Customer check charged back by bank for absence of counter signature Deposit of P100,000 incorrectly recorded by bank as Check of Sim Company charged by bank against Sam account 4,000,000 2,700,000 600,000 475,000 10,000 940,000 50,000 10,000 150,000 Customer's note collected by bank in favor of Sam Company. Face 400,000 40,000 440,000 5,000 Interest Total Collection fee Erroneous debit memo of December 28 435,000 to charge Sam account with settlement of bank loan 200,000 300,000 Deposit of Sim Company credited to Sam account Required: Prepare a bank reconciliation under the adjusted balance method. Make adjusting entries.
Transcribed Image Text:I. COMPREHENSIVE PROBLEMS 1. In reconciling the cash balance on December 31 with that shown in the bank statement, Sam Company provided the following information. Balance per bank statement Balance per book Outstanding checks Deposit in transit Service charge Proceeds of bank loan, December 1, discounted for 6 months at 12%, not recorded on Sam Company Customer check charged back by bank for absence of counter signature Deposit of P100,000 incorrectly recorded by bank as Check of Sim Company charged by bank against Sam account 4,000,000 2,700,000 600,000 475,000 10,000 940,000 50,000 10,000 150,000 Customer's note collected by bank in favor of Sam Company. Face 400,000 40,000 440,000 5,000 Interest Total Collection fee Erroneous debit memo of December 28 435,000 to charge Sam account with settlement of bank loan 200,000 300,000 Deposit of Sim Company credited to Sam account Required: Prepare a bank reconciliation under the adjusted balance method. Make adjusting entries.
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