Bank Reconciliation - Answer PDF

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Summary

A.Rancor Company Bank Reconciliation Statement For the month ended December 2020Balance per books 2,700, Add:Proceeds from bank loan 940, Collection of notes plus interest, net of collection fee 435, 1,375,Sub-total 4,075, Less:Customer's check charged back by bank 50, Service charge 10, (60,000)Adj...

Description

A. Rancor Company Bank Reconciliation Statement For the month ended December 2020 Balance per books

2,700,000

Add: Proceeds from bank loan Collection of notes plus interest, net of collection fee

940,000 435,000

Sub-total

1,375,000 4,075,000

Less: Customer's check charged back by bank Service charge

50,000 10,000

Adjusted balance per books

(60,000) 4,015,000

Balance per bank

4,000,000

Add: Deposit in transit Check of Rancid Company charged by bank against Rancor Company account Correction of erroneous bank debit of 150,000 Erroneous debit memo to charge company's account with settlement of bank loan

475,000 90,000 150,000 200,000

Sub-total Less: Deposit of Rancid Company credited to Rancor account Outstanding checks Adjusted balance per bank

915,000 4,915,000

300,000 600,000

(900,000) 4,015,000

B. Cash Discount on Notes Payable

940,000 60,000

Notes Payable

Cash Collection Fee

1,000,000

435,000 5,000

Notes Receivable

400,000

Interest Revenue

Accounts Receivable

40,000

50,000

Cash

Bank Service Charge Cash

50,000

10,000 10,000

Alpha Company Bank Reconciliation Statement For the month ended December 31, 2020 Cash balance per ledger

4,990,000

Add: Proceeds of bank loan discounted on December 1 for one year at 14%

516,000

Sub-total

5,506,000

Less: Correction of error arising from understating payment of accounts payable

(180,000)

Adjusted cash balance per ledger

5,326,000

Cash balance per bank

5,500,000

Add: Undeposited collections on December 31

300,000

Correction of error arising from charging Omega Company check against Alpha Company account

50,000

Deposit of December 27 omitted from bank statement

150,000

Sub-total Less: Correction of error arising from crediting Omega Company deposit to Alpha Company Outstanding checks Adjusted cash balance per bank

500,000 6,000,000

130,000 544,000

(674,000) 5,326,000

B. Cash Discount on Notes Payable

516,000 84,000

Notes Payable

Accounts Payable Cash

600,000

180,000 180,000

Pathetic Company Bank Reconciliation Statement For the Month Ended 31 December 2020 Cash in bank balance per general ledger

1,300,000

Add: Correction of erroneous payment record Payment stops on check number 555

20,000 10,000

Sub-total

30,000 1,330,000

Less: Service charge for August NSF check received from a customer Misappropriated cash Adjusted cash in bank balance per general ledger

Balance per bank statement

5,000 85,000 30,000

(120,000) 1,210,000

1,200,000

Add: Receipts of August 31, deposited September 1 Sub-total

245,000 1,445,000

Less: Outstanding checks Adjusted balance per bank statement

B.

(235,000) 1,210,000

Cash

20,000

Accounts Payable

Cash

20,000

10,000

Accounts Payable/Miscellaneous Income

Bank Service Charge

10,000

5,000

Cash

Accounts Receivable

5,000

85,000

Cash

Receivable from Cashier

85,000

30,000

Cash

Receivable from Cashier Sales Discount

30,000

10,000 10,000...