Reference no: EM133080790
Problem - On August 31, 2021, the Herson Amorsolo Fabricators had a cash balance per books of Php 57,815. The Banco de Oro statement reported a balance of Php 68,586. A comparison of the statement with the cash account revealed the following facts:
1. The bank statement included a debit memo of Php 300 for the cost of 2 checkbooks.
2. Cash sales of Php 8,361.50 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for Php 8,461.50. the bank credited Herson Amorsolo Fabricators for the correct amount.
3. Outstanding check as of August 31 totaled Php 12,762.50 and deposit in transit were Php 9,361.50
4. On August 18, the company issued check # 1181 for Php 6,580 to Citra Steel on account. The check which cleared the bank in August was incorrectly journalized and posted by Herson Amorsolo Fabricators for Php 6,850.
5. A Php 20,000 note receivable was collected by the bank for Herson Amorsolo Fabricators on August 31 plus Php 800 interest. The bank charged a collection fee of Php 200. The only entry made in August by the company for the note was to accrue interest through August 31.
6. Included with the cancelled checks was a check issued by Garcia company to E. Flores for Php 6,000 that was incorrectly charged to Herson Amorsolo Fabricators.
7. On August 31, the bank statement showed a DAIF charge of Php 7,100 for the check issued by Gomez Realty, a customer, to Herson Amorsolo Fabricators on account.
Required - Prepare the bank reconciliation statement as of August 31, 2021
BANK TO BOOK
BOOK TO BANK
ADJUSTED BALANCES
Prepare the journal entries.