Bank reconciliation
June Company provided the following information at month-end:
Cash in bank per bank statement 8,000,000 Deposit in transit 1,200,000 Outstanding checks, including certified check of 200,000 1,500,000 Amount erroneously credited by bank to June's account 150,000 Note collected by bank for June Company, including interest of 100,000 1,100,000 Service charge for the current month 20,000 "NSF/No sufficent fund" checks of customers returned by bank 500,000 Error in recording a check in the book. The correct amount as paid by the bank is 100,000, instead of 200,000 as recorded in the book 100,000 Saving deposit in other bank closed by the Central Bank 1,000,000 Currency and coins on hand 900,000 Petty cash fund 50,000
Please show solution.
1. What is the adjusted cash in bank at month-end?
a. 7,750,000
b. 7,900,000
c. 8,050,000
d. 7,550,000
2. What is the unadjusted cash in bank per ledger at month-end?
a. 7,070,000
b. 7,220,000
c. 7,270,000
d. 7,750,000
3. What total amount of cash should be reported as current asset?
a. 8,700,000
b. 9,700,000
c. 8,020,000
d. 8,850,000
Bank reconciliation
June Company provided the following information at month-end:
| Cash in bank per bank statement | 8,000,000 |
| Deposit in transit | 1,200,000 |
| Outstanding checks, including certified check of 200,000 | 1,500,000 |
| Amount erroneously credited by bank to June's account | 150,000 |
| Note collected by bank for June Company, including interest of 100,000 | 1,100,000 |
| Service charge for the current month | 20,000 |
| "NSF/No sufficent fund" checks of customers returned by bank | 500,000 |
| Error in recording a check in the book. The correct amount as paid by the bank is 100,000, instead of 200,000 as recorded in the book | 100,000 |
| Saving deposit in other bank closed by the Central Bank | 1,000,000 |
| Currency and coins on hand | 900,000 |
| Petty cash fund | 50,000 |
Please show solution.
1. What is the adjusted cash in bank at month-end?
a. 7,750,000
b. 7,900,000
c. 8,050,000
d. 7,550,000
2. What is the unadjusted cash in bank per ledger at month-end?
a. 7,070,000
b. 7,220,000
c. 7,270,000
d. 7,750,000
3. What total amount of cash should be reported as current asset?
a. 8,700,000
b. 9,700,000
c. 8,020,000
d. 8,850,000
Related questions
Bigetry Company provided the following information:
| Balance per book, August 31 | 2,000,000 |
| Receipts per book for August | 4,400,000 |
| Disbursements per book for august | 3,600,000 |
| Balance per bank, August 31 | 1,860,000 |
| Bank receipts for august | 5,000,000 |
| Bank disbursement for august | 3,940,000 |
| August collection of 200,000 recorded by entity as | 20,000 |
| August check in payment of account payable for 600,000 recorded by entity as | 60,000 |
| Deposit of Bigote Company erroneously credited by bank to bigetry company | 200,000 |
| August check of bigote company erroneously credited by bank to bigetry company | 400,000 |
| NFS check: | |
| July | 100,000 |
| August | 50,000 |
| Note collected by bank for bigetry Company: | |
| July | 200,000 |
| August | 300,000 |
| Deposit in transit | |
| July 31 | 600,000 |
| August 31 | 480,000 |
| Outstandin checks | |
| July 31 | 100,000 |
| August 31 | 650,000 |
Required:
Prepare a proof of cash for the month of august following the "book to bank" method.
TMG Company provided the following data relating to the cash transactions and bank account for the month of July:
| Cash balance per ledger | ? |
| Cash balance per bank statement | ? |
| Debit memo for July service charge | 5,000 |
| Deposit of July 31 not recorded by bank until August 1 | 450,000 |
| Outstanding checks, including certified check of 50,000 | 750,000 |
| Proceeds of bank loan not recorded in ledger | 500,000 |
| Proceeds from customer note, face 400,000, collected by bank, collection fee of 15,000 | 435,000 |
| A creditor check had been entered in the book as 20,000 and was erroneously deducted by bank at | 200,000 |
| A customer check was returned by bank marked DAIF | 50,000 |
| Correct cash balance | 3,000,000 |
Please show computations/explanation.
1. What was the cash balance per ledger?
a. 2,120,000
b. 3,055,000
c. 2,555,000
d. 2,065,000
2. What is the cash balance per bank statement?
a. 3,700,000
b. 3,070,000
c. 3,050,000
d. 2,370,000
Pool company prepared the following bank reconciliation for the month of November:
| Balance per bank statement, November 30 | 3,600,000 | |
| Add: Deposit in Transit | 800,000 | |
| 4,400,000 | ||
| Less: Outstanding Checks | 1,200,000 | |
| Bank Credit recorded in error | 200,000 | 1,400,000 |
| Balance per book, November 30 | 3,000,000 | |
| Data Per bank statement for the month of December | ||
| December deposits, including notes receivable collected of 1,000,000 for Pool company | 5,500,000 | |
| December disbursement, including NSF check 350,000 and service charge 50,000 | 4,400,000 |
All items that were outstanding on november 30 cleared through the bank in december, including the bank credit
In addition checks of 500,000 were outstanding and deposits of 700,000 were in transit in December 31.
1. What is the adjusted cash in bank on December 31?
a. 4,700,000
b. 4,900,000
c. 4,500,000
d. 3,200,000
2. What is the balance of cash per ledger on December 31?
a. 4,100,000
b. 4,900,000
c. 4,700,000
d. 4,300,000
3. What is the amount of cash receipt per book in December?
a. 5,400,000
b. 4,400,000
c. 5,500,000
d. 6,400,000
4. What is the amount of cash disbursement per book in December?
a. 3,700,000
b. 3,300,000
c. 3,100,000
d. 3,500,000
