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

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.