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By: Lailane
Problem 9 – 13 Frivolous Company
Provided the following information for the bank reconciliation:
All the items that were outstanding on November 30 cleared through the bank in
December, including the bank credit. In addition, 500,000 in checks were
outstanding and deposits of 700,000 were in transit on December 31.
1. What is the balance of cash per ledger on December 31?
A. 4,100,000 Balance per bank statement, Nov. 30 3,600,000
B. 4,900,000 Add: Deposits 5,500,000
C. 4,700,000 Total 9,100,000
D. 4,300,000 Less: Disbursement 4,400,000
Balance per bank statement, Dec. 31 4,700,000
2. What is the amount of cash receipts perper
Balance book instatement,
bank December? Dec. 31 4,700,000
A. 5,400,000 Add: Deposits in transit, Dec. 31 700,000
B. 4,400,000 Total
Bank Receipts in December 5,400,000
5,500,000
C. 5,500,000 Less: Outstanding
Note collected Checks,
during Dec. 31
December 500,000
(1,000,000)
D. 6,400,000 Adjusted
Deposit incash balance
Transit: 4,900,000
November (800,000)
Cash per
3. What is the amount of cash disbursements ledger
December
per book in December? 4,300,000
700,000
Add: Note collected
Cash Receipts per book, December 1,000,000
4,400,000
A. 3,700,000 Bank
Total Disbursements in December 4, 400,000
5,300,000
B. 3,300,000 December debit memos:
Less: NSF Check 350,000
C. 3,100,000 NSF Service
Check Charge 350,000
50,000 400,000
D. 3,500,000 Service Charge
Adjusted cash balance 50,000 (400,000)
4,900,000
November bank reconciling items:
Outstanding Checks 1,200,000
Erroneous bank credit 200,000 (1,400,000)
Outstanding Checks, December 500,000
Cash Disbursements per book, December 3,100,000
Problem 9 – 19 Opaque Company
All reconciliation items on March 31cleared through the bank in April. Outstanding
checks on April 30 totaled 750,000 and deposits in transit amounted to 1,500,000.
1. What is the balance of cash per ledger on April 30?
A. 6,400,000 Balance per bank statement, March 31 4,650,000
B. 5,650,000 Add: Deposits 6,000,000
C. 4,900,000 Total 10,650,000
D. 4,650,000 Less: Disbursement 5,000,000
Balance per bank statement, April 30 5,650,000
2. What is the amount of cash receipts perper
Balance book
bankinstatement,
April? April 30 5,650,000
A. 5,000,000 Add:
FromDeposits
the monthin of
transit,
April:April 30 1,500,000
B. 6,500,000 Total 7,150,000
C. 7,500,000 Less: Outstanding Checks, April 30
Deposits 750,000
6,000,000
D. 5,500,000 Adjusted
Deposit incash balance
Transit: 6,400,000
March (1,000,000)
Cash per
3. What is the amount of cash disbursementsledger
April
per book in April? 6,400,000
1,500,000
A. 5,000,000 Cash Receipts per book, April 6,500,000
From the month of April:
B. 5,500,000
C. 4,500,000 Disbursements 5,000,000
D. 5,750,000 Outstanding Checks:
March (1,250,000)
April 750,000
Cash Disbursements per book, April 4,500,000
Proof of Cash
Objectives
To discover or identify cash receipts and cash disbursements:
REQUIRED:
• Prepare bank reconciliation on October 31 and November 30.
• Adjusting Entries on November 30.
Beehive Company
Bank Reconciliation Beehive Company
October 31 Bank Reconciliation
November 30
Adjusted book balance 600,000
Balance per book 1,000,000
Balance per bank 400,000
Add: Understated cash receipt
Add: Deposit in transit 300,000
Correct 100,000
Total 700,000
Recorded as 10,000 90,000
Less: Outstanding Checks 100,000
Total 1,090,000
Adjusted bank balance 600,000
Less: Understated cash disbursement
Correct 300,000
Recorded as 30,000 270,000
Adjusted book balance 820,000
Recorded as 10,000
Recorded as 30,000
Bank to
Book
Adjusted Method
Balance
Method
Note collected
January 15,000 (15,000)
February 20,000 20,000
NSF Check
Book
January (5,000) (5,000) Book
February Debits 10,000 (10,000)
Credits
Service Charge
January (1,000) (1,000)
ADJUSTED BOOK BALANCE 59,000 205,000 184,000 80,000
2015
#
Pro-forma Proof of Cash for BOOK TO BANK METHOD
xxx Company
Proof of Cash
For the month of February
Note collected
January 15,000 (15,000)
February 20,000 20,000
NSF Check
January (5,000) (5,000)
February 10,000 (10,000)
Service Charge
January (1,000) (1,000)
Deposit in transit:
January (40,000) 40,000
February (75,000) (75,000)
Outstanding Checks
January 65,000 65,000
February (119,000) 119,000
Deposit in transit:
January 40,000 (40,000)
February 75,000 75,000
Outstanding Checks
January (65,000) (65,000)
February 119,000 (119,000)
Note collected
January (15,000) 15,000
February (20,000) (20,000)
NSF Check
January 5,000 5,000
February (10.000) 10,000
Service Charge
January 1,000 1,000