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Problem 2-11 (AICPA Adapted) AAD 01-& eldos Pearl Company maintains a checking accounts at the City Bank. The bank provides a bank statement along with canceled checks on the last day of each month. The July bank statement included the following information: Balance, July 1 Deposits Checks processed Service charge NSF check Monthly loan payment deducted by bank from account 3,200,000 8,600,000 7,500,000 50,000 11001150,000 500,000 Deposits outstanding totaled P400,000 and all checks written by Pearl Company were processed by the bank except for check of P500,000. A P200,000 July deposit from a credit customer was recorded by Pearl Company as P20,000 debit to cash and credit to accounts receivable. A check correctly recorded by Pearl Company as P30,000

Problem 2-11 (AICPA Adapted) AAD 01-& eldos Pearl Company maintains a checking accounts at the City Bank. The bank provides a bank statement along with canceled checks on the last day of each month. The July bank statement included the following information: Balance, July 1 Deposits Checks processed Service charge NSF check Monthly loan payment deducted by bank from account 3,200,000 8,600,000 7,500,000 50,000 11001150,000 500,000 Deposits outstanding totaled P400,000 and all checks written by Pearl Company were processed by the bank except for check of P500,000. A P200,000 July deposit from a credit customer was recorded by Pearl Company as P20,000 debit to cash and credit to accounts receivable. A check correctly recorded by Pearl Company as P30,000

Century 21 Accounting Multicolumn Journal
Century 21 Accounting Multicolumn Journal
11th Edition
ISBN:9781337679503
Author:Gilbertson
Publisher:Gilbertson
Chapter5: Cash Control Systems
Section: Chapter Questions
Problem 2AP
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Problem 2-11 (AICPA Adapted) Pearl Company maintains a checking accounts at the City Bank. The bank provides a bank statement along with canceled checks on the last day of each month. The July bank statement included the following information: Balance, July 100 Deposits Checks processed Service charge NSF check Monthly loan payment deducted by bank from account 3,200,000 8,600,000 7,500,000 20050,000 150,000 500,000 Deposits outstanding totaled P400,000 and all checks written by Pearl Company were processed by the bank except for check of P500,000. 0532 A P200,000 July deposit from a credit customer was recorded by Pearl Company as P20,000 debit to cash and credit to accounts receivable. A check correctly recorded by Pearl Company as P30,000 disbursement was incorrectly processed by the bank as P300,000 disbursement. The cash balance per ledger on July 31 is P4,290,000. Required: 1. Determine the balance per bank sttaement on July 31. 2. Prepare a bank reconciliation on July 31 using the adjusted balance method. 3. Prepare the necessry adjusting entries to correct the accounts of Pearl Company on July 31.
Transcribed Image Text:Problem 2-11 (AICPA Adapted) Pearl Company maintains a checking accounts at the City Bank. The bank provides a bank statement along with canceled checks on the last day of each month. The July bank statement included the following information: Balance, July 100 Deposits Checks processed Service charge NSF check Monthly loan payment deducted by bank from account 3,200,000 8,600,000 7,500,000 20050,000 150,000 500,000 Deposits outstanding totaled P400,000 and all checks written by Pearl Company were processed by the bank except for check of P500,000. 0532 A P200,000 July deposit from a credit customer was recorded by Pearl Company as P20,000 debit to cash and credit to accounts receivable. A check correctly recorded by Pearl Company as P30,000 disbursement was incorrectly processed by the bank as P300,000 disbursement. The cash balance per ledger on July 31 is P4,290,000. Required: 1. Determine the balance per bank sttaement on July 31. 2. Prepare a bank reconciliation on July 31 using the adjusted balance method. 3. Prepare the necessry adjusting entries to correct the accounts of Pearl Company on July 31.
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