ASSIGNMENT

PART I. Prepare a bank reconciliation statement for Nics Company as of November 30, 201A. Use the adjusted method of bank reconciliation. (25 points)

The following unadjusted cash balances are available for Nics Company for the month ended November 30, 201A.

Cash balance per bank statement, November 30, 201AP 299,067.60

Cash balance per company records, November 30, 201A298,510.56

The bank statement disclosed the following information:

1.Charges by bank included a returned customer's check for P 3,315.36 because of insufficient funds (NSF) and service charge of P360 for November.

2.Credits by the bank included a customer's note for P28,800 plus interest of P288 that was collected on November 29, 201A.

A review of the company records disclosed the following information:

1.A deposit for P27,428.88 made on November 29, 201A did not appear on the bank statement.

2.Customers' checks totaling P7,857.60 were still on hand at November 30, 201A awaiting deposit.

3.The following company checks were still outstanding as of November 30, 201A:

Check #145243

P

2,308.56

Check #145247

3,532.32

Check #145250

6,318.00

4.Check #145257 for P2,188.80 in payment of a creditor account and included with the canceled checks in the bank statement has been erroneously recorded in the company records as P 460.80.

PART II. Prepare a Proof of Cash from the following transactions of Nics Company given below: (25 points)

Balance per company's ledger

September 30P975,000.00

October 311,312,500.00

Total debits to cash per company's books (recorded receipts) during October4,687,500.00 Total credits to cash per company's books(recorded disbursements) during

October4,350,000.00

Balance per bank statement

September 301,007,625.00

October 311,271,625.00

December receipts recorded by the bank during October4,639,500.00

December disbursements recorded by the bank during December4,375,500.00 Deposits in transit

September 30300,000.00

October 31421,875.00

Outstanding checks

September 30268,125.00

October 31221,250.00

Bank service charges (recorded by the depositor in the month following the month of charge)

September 302 250.00

October 311,500.00

Bank credit memo for customer's note collected by the bank in September (face

value P60,000 plus interest of P600), recorded by the company only on October

31

113,625.00

Bank credit memo for proceeds of bank loan granted by the bank on October 31

187,500.00

Customer's DAIF check returned by the bank (recorded by the company in the

following month)

October

46,875.00

September

26,250.00

Rubric for grading (per part)

PERFORMANCE INDICATORS POINTS

Correct accounts and amounts used

10

Computed final amounts are correct/balanced

15

TOTAL

25