Reference no: EM132829519

Question -

Q1) Janx Company provided the following information for the month of Dec.:

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 10,000

Proceeds of bank loan, Dec. 1, discounted for 6 months at 12%, not recorded on company books 940,000

Customer's check charged back by bank for absence of counter signature 50,000

Deposit of P100,000 incorrectly recorded by bank as 10,000

Check of Jinx Company charged by bank agaist Janx Company account 150,000

Customer's note collected by bank in favor of Janx Company.

Face 400,000

Interest 40,000

Total 440,000

Collection fee 5,000 435,000

Erroneous debit memo of Dec. 28, to charge company's account with settlement of bank loan 200,000

Deposit of Jinx Company credited to Janx account 300,000

Requirement - Prepare Bank Reconciliation (Adjusted Method only).

Q2) Harley Company received the bank statement for the month of March. However, the closing balance of the account was unreadable.

Attempts to contact the bank after office hours did not secure the desired information.

Feb. 28 book balance 1,460,000

Note collected by bank 100,000

Interest earned on note 10,000

NSF check of customer 130,000

Bank service charge on NSF check 2,000

Other bank service charge 3,000

Outstanding checks 200,000

Deposit of Feb. 28 placed in night depository 85,000

Check issued by Joker Company charged to Harley's account 20,000

What is the cash balance per bank statement?

a) 1,435,000

b) 1,530,000

c) 1,340,000

d) 1,550,000