The following items are provided by Ayala Land Inc. regarding the bank reconciliation of one of...
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The following items are provided by Ayala Land Inc. regarding the bank reconciliation of one of its current accounts in the Bank Philippine Islands for the year ended December 31, 2020: 3,000,000 Ayala Land Inc. Bank Statement Balance Current Account in BPI Bank Bank Service Charge for the year 2020 Note Receivable Collected by Bank NSF Check from Ayala Land Inc.'s Customer Interest on Note Receivable 2,500,000 200,000 Pre-authorized payment for electric bill (Ayala Land Inc. authorized BPI to automatically pay its electric bill as submitted directly to BPI) Outstanding check (including P100,000 certified check by BPI's manager) Deposit in Transit Check of P300,000 drawn and issued to a supplier but recorded by Ayala Land Inc. as P200,000 Ayala Corporation's Deposit credited by BPI to Ayala Land Inc. Notes Payable of Ayala Property Management charged by BPI to Ayala Land Inc. Time deposit of Ayala Land Inc. of P1,000,000 matures on Dec. 31, 2020 and credited by BPI to Ayala Land. Inc. Account on that date 300,000 400,000 100,000 300,000 1,000,000 400,000 100,000 500,000 300,000 500,000 Note: The bank has not committed any error during 2020 except those specifically stated above. Any remaining difference after reconciliation pertains to the cash shortage resulting from the cashier and accountant's defalcation of the company's cash. Required: Based on the result of your audit, determine the following as of December 31, 2020: 1. Adjusted balance per bank II. Adjusted balance per book III. Cash shortage arising from the cash defalcation by the company's cashier and accountant The following items are provided by Ayala Land Inc. regarding the bank reconciliation of one of its current accounts in the Bank Philippine Islands for the year ended December 31, 2020: 3,000,000 Ayala Land Inc. Bank Statement Balance Current Account in BPI Bank Bank Service Charge for the year 2020 Note Receivable Collected by Bank NSF Check from Ayala Land Inc.'s Customer Interest on Note Receivable 2,500,000 200,000 Pre-authorized payment for electric bill (Ayala Land Inc. authorized BPI to automatically pay its electric bill as submitted directly to BPI) Outstanding check (including P100,000 certified check by BPI's manager) Deposit in Transit Check of P300,000 drawn and issued to a supplier but recorded by Ayala Land Inc. as P200,000 Ayala Corporation's Deposit credited by BPI to Ayala Land Inc. Notes Payable of Ayala Property Management charged by BPI to Ayala Land Inc. Time deposit of Ayala Land Inc. of P1,000,000 matures on Dec. 31, 2020 and credited by BPI to Ayala Land. Inc. Account on that date 300,000 400,000 100,000 300,000 1,000,000 400,000 100,000 500,000 300,000 500,000 Note: The bank has not committed any error during 2020 except those specifically stated above. Any remaining difference after reconciliation pertains to the cash shortage resulting from the cashier and accountant's defalcation of the company's cash. Required: Based on the result of your audit, determine the following as of December 31, 2020: 1. Adjusted balance per bank II. Adjusted balance per book III. Cash shortage arising from the cash defalcation by the company's cashier and accountant
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1 I Adjusted bank balance P3600000 its computation i... View the full answer
Related Book For
Horngrens Financial And Managerial Accounting The Financial Chapters
ISBN: 9780134486840
6th Edition
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura
Posted Date:
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