Question: Problem 2 Presented below are extracts from the general ledger of the account and the relevant statement of account. Prepare bank reconciliation and prepare the
Problem 2
Presented below are extracts from the general ledger of the
account and the relevant statement of account. Prepare bank reconciliation and
prepare the relevant adjusting entries for December 31, 2020. Use the adjusted
balance method.
Cash-in-Bank
Debit
Beginning balance, 12/1/19 2,000,000
Loan from Bank net of P100,000
origination fee (granted in November 2020) 900,000
Deposit, 12/5/20 500,000
Deposit, 12/16/20 120,000
Deposit, 12/20/20 400,000
Deposit, 12/25/20 200,000
Deposit, 12/31/20 250,000
Credit
Deposit, 12/31/20 250,000
Bank Service Charges for November 2020 20,000
NSF Check for November 2020 100,000
Check 115 50,000
Check 116 120,000
Check 117 80,000
Check 118 75,000
Check 119 60,000
Check 120 140,000
Check 122 280,000
Check 123 100,000
Xandra Company
Debit
Bank Service Charges for December 2020 18,000
NSF Check from customer in December 2020 32,000
First month loan payment 100,000
Check 110 80,000
Check 111 240,000
Check 112 130,000
Check 113 150,000
Check 121 100,000
Check 115 50,000
Check 116 120,000
Check 117 80,000
Check 118 75,000
Check 119 60,000
Check 124 300,000
Credit
Deposit, 12/25/20 200,000
Beginning balance, 12/1/20 1,500,000
Deposit, 11/31/20 1,000,000
Error made in November when the bank erroneously debited the account of Xandra Company for check issued by Sandra Company 1,000,000
Deposit, 12/5/20 500,000
Deposit, 12/16/20 120,000
Deposit, 12/20/20 400,000
Additional information:
1. Check 114 amounting to P120,000 issued on November 31, 2020
remains not cashed by December 31, 2020.
2. All checks issued and/or cashed were with proper
authorization and all signatures were verified.
Problem 2. Prepare the bank reconciliation on December 31, 2020
(10 points). Prepare the adjusting entries (5 points). Email the photo/s to me.
Then, answer the following:
7. How much is the net adjustment to cash in bank on December
31, 2020? State your answer by stating in this manner: DEBIT XXX or CREDIT
XXX.*
8. How much is the deposit in transit?*
9. How much is the total outstanding checks?*
10. How much is the adjusted balance of cash in bank?*
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