1. In auditing the Maranao Company, you obtain directly from the bank, with which it does business, the bank statement, canceled checks, and other memoranda which relate to the company's bank account, for December 2021. In reconciling the bank balance at December 31, 2021 with that shown on the company's book, you observe the facts set forth below: Balance per bank statement, 12/31/21 Balance per book, 12/31/2021 |Outstanding checks, 12/31/21 Receipts of 12/31/21 deposited 1/02/2022 Service Charge for Nov. 2021 per Bank Memo of 12/15/21 Proceeds of Bank Loan, 12/15/21, discounted for 3 months at 25% per annum, omitted from company's books Deposit of 12/23/21 omitted from Bank Statement Check of Tote's Products Co., charged back on 12/22/21 of absence of 1 88,219.12 2 58,983.46 3 32,108.42 4 5,317.20 5 3.85 6 9,875.00 7 2,892.41 counter-signature and redeposited with complete signature on 8 01/5/22,; no entry on the books having been made for the charge back or the redeposit 417.50 9 Error on Bank STAtement in entering deposit of 12/16/21 Correct Amount - 3,182.40 Enterered in Statement - 3,181.40 1.00 Check No. 3917 of Mine Manufacturing Co Charge by bank in error to 10 company account 2,960.00 Proceeds of Note of Juan Dela Cruz Co., collected by the bank, 12/10/21 not in company's book, Prinicipal, P2,000, Interest, P 20,; 11 Collection Charge, P5.00 2,015.00 Erroneous debit memo of 12/23/21 to charge company's account for settlement of bank loan, which was paid by check no. 870 on same 12 date 5,000.00 Error on bank statement in entering deposit of 12/04/21; Entered 13 amount - P4,817.10; Correct Amount P 4.807.10 10.00 14 Deposit of Mine manufacturing Inc. credited in error to the company 1,819.20 Requirement: a) Prepare a reconciliation of the Maranao Company's bank account at December 31, 2021 using adjusted balance method. b) Prepare the adjusting journal entries to adjust the Maranao books to reflect the correct balance at December 31, 2021.
1. In auditing the Maranao Company, you obtain directly from the bank, with which it does business, the bank statement, canceled checks, and other memoranda which relate to the company's bank account, for December 2021. In reconciling the bank balance at December 31, 2021 with that shown on the company's book, you observe the facts set forth below: Balance per bank statement, 12/31/21 Balance per book, 12/31/2021 |Outstanding checks, 12/31/21 Receipts of 12/31/21 deposited 1/02/2022 Service Charge for Nov. 2021 per Bank Memo of 12/15/21 Proceeds of Bank Loan, 12/15/21, discounted for 3 months at 25% per annum, omitted from company's books Deposit of 12/23/21 omitted from Bank Statement Check of Tote's Products Co., charged back on 12/22/21 of absence of 1 88,219.12 2 58,983.46 3 32,108.42 4 5,317.20 5 3.85 6 9,875.00 7 2,892.41 counter-signature and redeposited with complete signature on 8 01/5/22,; no entry on the books having been made for the charge back or the redeposit 417.50 9 Error on Bank STAtement in entering deposit of 12/16/21 Correct Amount - 3,182.40 Enterered in Statement - 3,181.40 1.00 Check No. 3917 of Mine Manufacturing Co Charge by bank in error to 10 company account 2,960.00 Proceeds of Note of Juan Dela Cruz Co., collected by the bank, 12/10/21 not in company's book, Prinicipal, P2,000, Interest, P 20,; 11 Collection Charge, P5.00 2,015.00 Erroneous debit memo of 12/23/21 to charge company's account for settlement of bank loan, which was paid by check no. 870 on same 12 date 5,000.00 Error on bank statement in entering deposit of 12/04/21; Entered 13 amount - P4,817.10; Correct Amount P 4.807.10 10.00 14 Deposit of Mine manufacturing Inc. credited in error to the company 1,819.20 Requirement: a) Prepare a reconciliation of the Maranao Company's bank account at December 31, 2021 using adjusted balance method. b) Prepare the adjusting journal entries to adjust the Maranao books to reflect the correct balance at December 31, 2021.
Century 21 Accounting Multicolumn Journal
11th Edition
ISBN:9781337679503
Author:Gilbertson
Publisher:Gilbertson
Chapter5: Cash Control Systems
Section: Chapter Questions
Problem 2AP
Related questions
Question
Transcribed Image Text:1. In auditing the Maranao Company, you obtain directly from the bank, with which it does
business, the bank statement, canceled checks, and other memoranda which relate to
the company's bank account, for December 2021. In reconciling the bank balance at
December 31, 2021 with that shown on the company's book, you observe the facts set
forth below:
Balance per bank statement, 12/31/21
Balance per book, 12/31/2021
Outstanding checks, 12/31/21
Receipts of 12/31/21 deposited 1/02/2022
Service Charge for Nov. 2021 per Bank Memo of 12/15/21
Proceeds of Bank Loan, 12/15/21, discounted for 3 months at 25% per
annum, omitted from company's books
Deposit of 12/23/21 omitted from Bank Statement
Check of Tote's Products Co., charged back on 12/22/21 of absence of
88,219.12
58,983.46
32,108.42
4
5,317.20
3.85
9,875.00
7
2,892.41
counter-signature and redeposited with complete signature on
8
01/5/22,; no entry on the books having been made for the charge
back or the redeposit
417.50
Error on Bank STAtement in entering deposit of 12/16/21
Correct Amount - 3,182.40
Enterered in Statement - 3,181.4O
1.00
Check No. 3917 of Mine Manufacturing Co Charge by bank in error to
10
company account
2,960.00
Proceeds of Note of Juan Dela Cruz Co., collected by the bank,
12/10/21 not in company's book, Prinicipal, P2,000, Interest, P 20,;
11
Collection Charge, P5.00
2,015.00
Erroneous debit memo of 12/23/21 to charge company's account for
settlement of bank loan, which was paid by check no. 870 on same
12
date
5,000.00
Error on bank statement in entering deposit of 12/04/21; Entered
13
amount - P4,817.10; Correct Amount - P 4.807.10
10.00
14
Deposit of Mine manufacturing Inc. credited in error to the company
1,819.20
Requirement:
a) Prepare a reconciliation of the Maranao Company's bank account at December 31,
2021 using adjusted balance method.
b) Prepare the adjusting journal entries to adjust the Maranao books to reflect the
correct balance at December 31, 2021.
123
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 3 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage
Auditing: A Risk Based-Approach (MindTap Course L…
Accounting
ISBN:
9781337619455
Author:
Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:
Cengage Learning
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage
Auditing: A Risk Based-Approach (MindTap Course L…
Accounting
ISBN:
9781337619455
Author:
Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:
Cengage Learning
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning