E1 - Finact1 - Proof Of Cash.docx

In reconciling the cash in bank account of Borderlands Company for the month of December, the following Data are gathered: Cash in Bank Account Bank Statement Balance Bank Debits Bank Credits Book Debits Book Credits Outstanding Checks Deposit in Transit Check erroneously charged by bank against entity’s account (corrected in subsequent month) Bank Service Charge Note Recorded as cash receipt when placed with bank for collection (note is actually collected by bank in subsequent month and credited by bank to entity’s account in the same month)

November 30 P 2,032,000 1,890,000

180,000 80,000

December 31 P 3,160,000 2,900,000 1,080,000 ? ? 1,440,000 592,000 498,000

40,000 2,000

50,000 4,000

200,000

300,000

Required: a. Four column Bank Reconciliation showing adjusted balances. b. Adjusting Entries

In reconciling the cash in bank account of Borderlands Company for the month of December, the following Data are gathered: Cash in Bank Account Bank Statement Balance Bank Debits Bank Credits Book Debits Book Credits Outstanding Checks Deposit in Transit Check erroneously charged by bank against entity’s account (corrected in subsequent month) Bank Service Charge Note Recorded as cash receipt when placed with bank for collection (note is actually collected by bank in subsequent month and credited by bank to entity’s account in the same month)

November 30 P 2,032,000 1,890,000

Required: a. Four column Bank Reconciliation showing adjusted balances. b. Adjusting Entries

180,000 80,000

December 31 P 3,160,000 2,900,000 1,080,000 ? ? 1,440,000 592,000 498,000

40,000 2,000

50,000 4,000

200,000

300,000