Problem 3

Please Provide Solution and expalanation for my guidance thank you ?

als of Problem 2-4 (LAA) urnal Cash Chivalry Company prepared the following bank reconciliation 000 on March 31: DOO Book balance 1,405,000 Add: March 31 deposit 750,000 DOO Collection of note 2,500,000 DOO Interest on note 150,000 3,400,000 Total 00 4,805,000 00 Less: Cavalry Company's deposit to our account 1,100,000 00 Bank service charge 5,000 1, 105,000 00 Adjusted book balance 3,700,000 Bank balance 5,630,000 Add: Error on check No. 175 45,000 the Total 5,675,000 Less: Preauthorized payment for light and water 245,000 NSF check 220,000 are Outstanding checks 1,650,000 2,115,000 Adjusted bank balance 3,560,000 Check No. 175 was made for the proper amount of P249,000 in payment of account. However the check was entered in the cash disbursements journal as P294,000. Chivalry Company authorized the bank to automatically pay its light and water bills as submitted directly to the bank. Required: a. Prepare a corrected bank reconciliation. b. Prepare adjusting entries on March 31. 63