Problem 8-19
Answer: C. 9,000,000
Adversary Company kept all cash in a
checking account. An examination of the
accounting records and bank statement for
the month of June revealed the following
information:
* The cash balance per book on June 30 is
P8,500,000.
Problem 8-20
Laconic Company received the bank
statement for the month of April which
included the following information:
* The bank statement shows on June 30, the
bank collected note for Adversary Company
and credited the proceeds of P950,000 to the
entity’s account.
Bank service charge for April
15,000
Check deposited by Laconic during April
was not collectible and has been marked
“NSF” by the bank and returned.
40,000
Deposits made but not yet recorded by bank
130,000
Checks written and mailed but not yet
recorded by bank
100,000
* Checks outstanding on June 30 amount to
P300,000.
* Adversary Company discovered that a
check written in June for 200,000 in payment
of an account payable had been recorded in
the entity’s records as P20,000.
The entity found the customer check for
P35,000 payable to the entity that had not
yet been deposited and had not been
recorded. The general ledger showed a bank
account balance of P920,000. What is the
adjusted cash in bank on April 30?
* Included with the June bank statement was
NSF check for P250,000 that Adversary
Company had received from a customer on
June 26.
a. 900,000
b. 865,000
c. 930,000
d. 965,000
* The bank statement shows a P20,000
service charge for June.
SOLUTION:
What is the cash in bank to be reported
in the statement of financial pisition on
June 30?
Bank balance
Undeposit checks
Bank service charge
NSF checks
A. 9,180,000
B. 9,360,000
C. 9,000,000
D. 3,300,000
Answer: a. 900,000
* A deposit of P1,000,000 that was placed in
the
bank’s night depository on June 30 does not
appear on the bank statement.
SOLUTION:
Cash bal. per book
Note collected
Bank error (200-20)
NSF check
Bank service charge
8,500,000
950,000
(180,000)
(250,000)
(20,000)
9,000,000
920,000
35,000
(15,000)
(40,000)
900,000
Problem 8-21
Problem 8- 22
Beacon Company provided the following
information for the month of December:
Cash balance per bank statement
4,000,000
Checks outstanding. Including certified
Check of P100,000
NSF checks of customers returned
by bank
Bank service charge shown in
December (check was drawn in
December for P100,000 but
Recorded at P10,000)
Deposit in transit
1,300,000
500,000
150,000
90,000
What is the cash balance per ledger on
December 31?
a. 4,900,000
b. 5,060,000
c. 4,880,000
d. 4,970,000
Answer : a. 4,900,000
February 28 book balance
Note collected by bank
Interest earned on note
NSF check of customer
Bank service charge on NSF check
Other bank service charges
Outstanding checks
Deposit of February 28 placed
In night depository
Check issued by Deceit Company
Charge to Decent account
SOLUTION:
(400,000)
1,300,000
4,900,000
1,460,000
100,000
10,000
130,000
2,000
3,000
202,000
85,000
20,000
What is the cash balance per bank
statement?
a. 1,435,000
b. 1,532,000
c. 1,338,000
d. 1,557,000
SOLUTION:
Cash balance per bank
4,000,000
Outstanding checks(500-100)
Deposit in transit
On March 31, Decent Company received a
bank statement which revealed the following
information: