of bank loan, December 1, discounted for 6 months at 12%, not recorded on company 10,000 books Customer’s check charged back by bank for absence 940,000 of counter signature 50,000 Deposit of P100,000 incorrectly recorded by bank as Check of Rancid Company charged by bank against 10,000 Rancor Company account 150,000 Erroneous debit memo of December 28, to charge company’s account with settlement of bank loan 200,000 Deposit of Rancid Company credited to Rancor account 300,000 Customer’s note collected by bank in favor of Rancor Company. Face 400,000 Int
of bank loan, December 1, discounted for 6 months at 12%, not recorded on company 10,000 books Customer’s check charged back by bank for absence 940,000 of counter signature 50,000 Deposit of P100,000 incorrectly recorded by bank as Check of Rancid Company charged by bank against 10,000 Rancor Company account 150,000 Erroneous debit memo of December 28, to charge company’s account with settlement of bank loan 200,000 Deposit of Rancid Company credited to Rancor account 300,000 Customer’s note collected by bank in favor of Rancor Company. Face 400,000 Int
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Rancor Company provided the following information for the month of December:
Balance per bank statement 4,000,000
Balance per cash book 2,700,000
Outstanding checks 600,000
Deposit in transit 475,000
Service charge
Proceeds of bank loan, December 1, discounted for
6 months at 12%, not recorded on company 10,000
books
Customer’s check charged back by bank for absence 940,000
of counter signature 50,000
Deposit of P100,000 incorrectly recorded by bank as
Check of Rancid Company charged by bank against 10,000
Rancor Company account 150,000
Erroneous debit memo of December 28, to charge company’s
account with settlement of bank loan 200,000
Deposit of Rancid Company credited to Rancor account 300,000
Customer’s note collected by bank in favor of Rancor Company.
Face 400,000 Interest 40,000
Total 440,000
Collection fee 5,000 435,000
Required: Prepare a bank reconciliation using the adjusted balance method.
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