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Required: 1. Prepare a properly classified bank reconciliation statement for each of the problems given below. 2. Prepare the necessary adjusting journal entries on the company's book for book reconciling items. Problem A - The accountant of Delta Company was tasked to perform monthly bank reconciliation. She downloaded the company's April 30 bank statement that showed a balance of P32,400. She also printed the cash ledger from the company's computerized accounting system. It contains the ending balance of P8,350. She also found the following reconciling items: 1. The bank statement showed bank service fee of P800. 2. The bank collected P1,500 from a note receivable for Delta Company. Also, a collection fee of P250 was charged.

Required: 1. Prepare a properly classified bank reconciliation statement for each of the problems given below. 2. Prepare the necessary adjusting journal entries on the company's book for book reconciling items. Problem A - The accountant of Delta Company was tasked to perform monthly bank reconciliation. She downloaded the company's April 30 bank statement that showed a balance of P32,400. She also printed the cash ledger from the company's computerized accounting system. It contains the ending balance of P8,350. She also found the following reconciling items: 1. The bank statement showed bank service fee of P800. 2. The bank collected P1,500 from a note receivable for Delta Company. Also, a collection fee of P250 was charged.

Auditing: A Risk Based-Approach (MindTap Course List)
Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter10: Auditing Cash, Marketable Securities, And Complex Financial Instruments
Section: Chapter Questions
Problem 32CYBK
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PART 3 - PROBLEM SOLVING Required: 1. Prepare a properly classified bank reconciliation statement for each of the problems given below. 2. Prepare the necessary adjusting journal entries on the company's book for book reconciling items. Problem A - The accountant of Delta Company was tasked to perform monthly bank reconciliation. She downloaded the company's April 30 bank statement that showed a balance of P32,400. She also printed the cash ledger from the company's computerized accounting system. It contains the ending balance of P8,350. She also found the following reconciling items: 1. The bank statement showed bank service fee of P800. 2. The bank collected P1,500 from a note receivable for Delta Company. Also, a collection fee of P250 was charged. 3. Deposits in transit, P51,000. 4. Checks outstanding on May 31, P79,100. 5. The accountant found a check issued to Blue Corp. for P4,500 that cleared the bank but was not in the cash ledger.
Transcribed Image Text:PART 3 - PROBLEM SOLVING Required: 1. Prepare a properly classified bank reconciliation statement for each of the problems given below. 2. Prepare the necessary adjusting journal entries on the company's book for book reconciling items. Problem A - The accountant of Delta Company was tasked to perform monthly bank reconciliation. She downloaded the company's April 30 bank statement that showed a balance of P32,400. She also printed the cash ledger from the company's computerized accounting system. It contains the ending balance of P8,350. She also found the following reconciling items: 1. The bank statement showed bank service fee of P800. 2. The bank collected P1,500 from a note receivable for Delta Company. Also, a collection fee of P250 was charged. 3. Deposits in transit, P51,000. 4. Checks outstanding on May 31, P79,100. 5. The accountant found a check issued to Blue Corp. for P4,500 that cleared the bank but was not in the cash ledger.
Problem B - The following transactions were recorded for Echo Company for the month of July 2020: 1. The account "Cash in Bank" showed a balance of P261,320 as of July 31, 2020. 2. Bank statement ending balance for the same month amounted to P253,320. 3. At the last day of July, the company received a P100,000 payment from a walk-in customer. Due to a delay in the delivery to the bank, the amount was only credited by the bank on August 2, 2020. 4. The company issued a check worth P92,000 to a creditor. It was only encashed by the creditor on August 13, 2020. 5. The bank credited P400 interest income to the account of Echo Company for the month of July 2020. The company only knew of this amount upon receipt of the July bank statement on August 1, 2020. 6. The bank deducted P80 from the account of Echo Company as a 20% withholding tax for the P400 interest income. The company also knew about this upon receipt of the bank statement on August 1, 2020.
Transcribed Image Text:Problem B - The following transactions were recorded for Echo Company for the month of July 2020: 1. The account "Cash in Bank" showed a balance of P261,320 as of July 31, 2020. 2. Bank statement ending balance for the same month amounted to P253,320. 3. At the last day of July, the company received a P100,000 payment from a walk-in customer. Due to a delay in the delivery to the bank, the amount was only credited by the bank on August 2, 2020. 4. The company issued a check worth P92,000 to a creditor. It was only encashed by the creditor on August 13, 2020. 5. The bank credited P400 interest income to the account of Echo Company for the month of July 2020. The company only knew of this amount upon receipt of the July bank statement on August 1, 2020. 6. The bank deducted P80 from the account of Echo Company as a 20% withholding tax for the P400 interest income. The company also knew about this upon receipt of the bank statement on August 1, 2020.
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