problem 2

Bank Reconciliation

Mavi Angel Balabbo

Sigrid Bless Bandigan
PROBLEM 2
Requirement 1
a. Prepare bank reconciliation on February 28,
showing the book balances before and after
adjustment
 a. Determine the balance per book and the balance per bank.
Balance per book
Formula: Beginning balance + Deposits- checks= Unadjusted book balance

Book balance, January 31 440,000

Book balance, February 28 2,400,000
Unadjusted book balance 2,840,000

Deposits 6,900,000
Checks (4,500,000)
2,400,000
 a. Determine the balance per book and the balance per bank.
Balance per bank
Formula: Beginning balance + Deposits- checks= Unadjusted bank balance

Unadjusted bank balance 3,265,000

Balance per book 2,840,000 Balance per bank 3,265,000
b. Trace the cash receipts to the bank statement to ascertain
whether there are deposits not yet acknowledged by the bank.
b. Trace the cash receipts to the bank statement to ascertain
whether there are deposits not yet acknowledged by the bank.
b. Trace the cash receipts to the bank statement to ascertain
whether there are deposits not yet acknowledged by the bank.
b. Trace the cash receipts to the bank statement to ascertain
whether there are deposits not yet acknowledged by the bank.
b. Trace the cash receipts to the bank statement to ascertain
whether there are deposits not yet acknowledged by the bank.
b. Trace the cash receipts to the bank statement to ascertain
whether there are deposits not yet acknowledged by the bank.
b. Trace the cash receipts to the bank statement to ascertain
whether there are deposits not yet acknowledged by the bank.
b. Trace the cash receipts to the bank statement to ascertain
whether there are deposits not yet acknowledged by the bank.
b. Trace the cash receipts to the bank statement to ascertain
whether there are deposits not yet acknowledged by the bank.
b. Trace the cash receipts to the bank statement to ascertain
whether there are deposits not yet acknowledged by the bank.
b. Trace the cash receipts to the bank statement to ascertain
whether there are deposits not yet acknowledged by the bank.

Deposit in transit
Balance per book 2,840,000 Balance per bank 3,265,000
Add: Deposit in Transit 450,000
c. Trace the checks issued to the bank statement to ascertain
whether there are checks not yet presented for payment.

Outstanding checks for January:

No. 114 240,000
115 160,000
116 60,000
c. Trace the checks issued to the bank statement to ascertain
whether there are checks not yet presented for payment.

Outstanding checks for January:

No. 114 240,000
115 160,000
116 60,000

No the same amount

of 240,000
c. Trace the checks issued to the bank statement to ascertain
whether there are checks not yet presented for payment.

Outstanding checks for January:

No. 114 240,000
115 160,000
116 60,000

No the same amount

of 160,000
c. Trace the checks issued to the bank statement to ascertain
whether there are checks not yet presented for payment.

Outstanding checks for January:

No. 114 240,000
115 160,000
116 60,000
c. Trace the checks issued to the bank statement to ascertain
whether there are checks not yet presented for payment.

Outstanding checks for January:

No. 114 240,000
115 160,000
116 60,000
c. Trace the checks issued to the bank statement to ascertain
whether there are checks not yet presented for payment.

Outstanding checks for January:

No. 114 240,000
115 160,000
116 60,000
c. Trace the checks issued to the bank statement to ascertain
whether there are checks not yet presented for payment.

Outstanding checks for January:

No. 114 240,000
115 160,000
116 60,000
c. Trace the checks issued to the bank statement to ascertain
whether there are checks not yet presented for payment.

Outstanding checks for January:

No. 114 240,000
115 160,000
116 60,000
c. Trace the checks issued to the bank statement to ascertain
whether there are checks not yet presented for payment.

Outstanding checks for January:

No. 114 240,000
115 160,000
116 60,000
c. Trace the checks issued to the bank statement to ascertain
whether there are checks not yet presented for payment.

Outstanding checks for January:

No. 114 240,000
115 160,000
116 60,000
c. Trace the checks issued to the bank statement to ascertain
whether there are checks not yet presented for payment.

Outstanding checks for January:

No. 114 240,000
115 160,000
116 60,000
c. Trace the checks issued to the bank statement to ascertain
whether there are checks not yet presented for payment.

Outstanding checks for January:

No. 114 240,000
115 160,000
116 60,000
c. Trace the checks issued to the bank statement to ascertain
whether there are checks not yet presented for payment.

Outstanding checks for January:

No. 114 240,000
115 160,000
116 60,000
c. Trace the checks issued to the bank statement to ascertain
whether there are checks not yet presented for payment.

Outstanding checks for January:

No. 114 240,000
115 160,000
116 60,000
Balance per book 2,840,000 Balance per bank 3,265,000

Add: Deposit in Transit 450,000

Total 3,715,000

Less: Outstanding checks

No. 116 60,000
122 180,000
124 120,000
125 250,000 (610,000)
d. The bank statement should be examined to determine whether
there are bank credits or debits not yet recorded by the depositor.
d. The bank statement should be examined to determine whether
there are bank credits or debits not yet recorded by the depositor.

No 270,000
d. The bank statement should be examined to determine whether
there are bank credits or debits not yet recorded by the depositor.

No 270,000 No 5,000
Balance per book 2,840,000 Balance per bank 3,265,000

Add: Note collected 270,000 Add: Deposit in Transit 450,000

Total 3,110,000 Total 3,715,000

Less: Outstanding checks

No. 116 60,000
122 180,000
124 120,000
125 250,000 (610,000)
Balance per book 2,840,000 Balance per bank 3,265,000

Add: Note collected 270,000 Add: Deposit in Transit 450,000

Total 3,110,000 Total 3,715,000

Less: Service charge (5,000) Less: Outstanding checks

No. 116 60,000
122 180,000
124 120,000
125 250,000 (610,000)
e. Watch out for errors. Errors are reconciling items of the party
which committed them.

In the problem, there are no errors committed.

f. Compute the adjusted balances.

Balance per book 2,840,000 Balance per bank 3,265,000

Add: Note collected 270,000 Add: Deposit in Transit 450,000

Total 3,110,000 Total 3,715,000

Less: Service charge (5,000) Less: Outstanding checks

No. 116 (60,000)
Adjusted book balance 3,105,000 (180,000)
122
124 (120,000)
125 (250,000) (610,000)
Adjusted bank balance 3,105,000
G. Make the formal Bank Reconciliation Statement
Requirement 2
b. Prepare journal entries to record the
adjustments that are indicated by the bank
reconciliation
Requirement 2
The ff. information was taken from ADJUSTING ENTRIES DEBIT CREDIT
the credit memo of February 28:
Face of the note 250,000 Cash in Bank 270,000
Interest on the note 30,000 Bank Service Charge 10,000
Maturity of the Value 280,000 Notes Receivable 250,000
Collection charge 10,000 Interest Income 30,000
Credit to your account 270,000 To record adjusting entry for notes collected.

Bank Service Charge 5,000

Cash in Bank 5,000
To record adjusting entry for bank service charge.
 THANK YOU
FOR LISTENING
Mavi Angel Balabbo Sigrid Bless Bandigan