FRANZENE PAGLICAWAN

BSA 2A2

INTERMEDIATE ACCOUNTING

Problem 3-6

(Book to Bank Method)

Bigotry Company

Proof of Cash

For the month of August

July Receipts Disbursements August

Balance per Book 1,200,000 4,400,000 3,600,000 2,000,000

Book Error on Collection 180,000 180,000

Book Error on Payment 540,000 (540,000)

Bank Error on Deposit 200,000 200,000

Bank Error on Payment 400,000 (400,000)

Note Collected:

July 200,000 (200,000)

August 300,000 300,000

NSF Check:

July (100,000) (100,000)

August 50,000 (50,000)

Deposit in Transit:

July (600,000) 600,000

August (480,000) (480,000)

Outstanding Checks:

July 100,000 100,000

August (650,000) 650,000

Balance per Bank 800,000 5,000,000 3,940,000 1,860,000

Adjusting Entries

1. Cash in Bank 300,000

Notes Receivable 300,000

2. Accounts Receivable 50,000

Cash in Bank 50,000

3. Cash in Bank 180,000

Accounts Receivable 180,000

4. Accounts Payable 540,000

Cash in Bank 540,000
(Bank to Book Method)
Bigotry Company
Proof of Cash
For the month of August

July Receipts Disbursements August

Balance per Bank 800,000 5,000,000 3,940,000 1,860,000

Bank Error on Deposit (200,000) (200,000)
Bank Error on Payment (400,000) 400,000
Book Error on Collection (180,000) (180,000)
Book Error on Payment (540,000) 540,000
Deposit in Transit:
July 600,000 (600,000)
August 480,000 480,000
Outstanding Checks:
July (100,000) (100,000)
August 650,000 (650,000)
Note Collected:
July (200,000) 200,000
August (300,000) (300,000)
NSF Check:
July 100,000 100,000
August (50,000) 50,000

Balance per Book 1,200,000 4,400,000 3,600,000 2,000,000

(Adjusted Balance Method)

Bigotry Company

Proof of Cash

For the month of August

July Receipts Disbursements August

Balance per Book Note 1,200,000 4,400,000 3,600,000 2,000,000

Collected:

July 200,000 (200,000)

August 300,000 300,000

NSF Checks:

July (100,000) (100,000)

August 50,000 (50,000)

Book Error on Collection 180,000 180,000

Book Error on Payment 540,000 (540,000)

Adjusted Book Balance 1,300,000 4,680,000 4,090,000 1,890,000

Balance per Bank 800,000 5,000,000 3,940,000 1,860,000

Deposit in Transit:

July 600,000 (600,000)

August 480,000 480,000

Outstanding Checks:

July (100,000) (100,000)

August 650,000 (650,000)

Bank Error on Deposit (200,000) (200,000)

Bank Error on Payment (400,000) 400,000

Adjusted Bank Balance 1,300,000 4,680,000 4,090,000 1,890,000