ABC Company's newly hired assistant prepared the following bank reconciliation on December 31, 2021: Book balance P2,810,000 Add: Deposits-in-transit 1,500,000 300,000 Interest on note Check for payment of CBA Company's supplier debited to our account Less: Bank service charge Adjusted book balance 2,200,000 4,000,000 90,000 P6,720,000 Bank balance P6,860,000 Add: Error on check no. 99 9,000 Collection of note 5,000,000 5,009,000 Less: Preauthorized payments for water bills NSF check from a customer 248,000 440,000 3,219,000 Outstanding checks Adjusted bank balance 3,907,000 P7,962,000 Check No. 99 was made for the proper amount P489,000 in payment of account. However, it was entered in the cash payments journal as P498,000. ABC Company authorized the bank to automatically pay its water bill as submitted directly to the bank. What is the correct cash in bank balance as of December 31,2021?

ABC Company's newly hired assistant prepared the following bank reconciliation on December 31, 2021: Book balance P2,810,000 Add: Deposits-in-transit 1,500,000 300,000 Interest on note Check for payment of CBA Company's supplier debited to our account Less: Bank service charge Adjusted book balance 2,200,000 4,000,000 90,000 P6,720,000 Bank balance P6,860,000 Add: Error on check no. 99 9,000 Collection of note 5,000,000 5,009,000 Less: Preauthorized payments for water bills NSF check from a customer 248,000 440,000 3,219,000 Outstanding checks Adjusted bank balance 3,907,000 P7,962,000 Check No. 99 was made for the proper amount P489,000 in payment of account. However, it was entered in the cash payments journal as P498,000. ABC Company authorized the bank to automatically pay its water bill as submitted directly to the bank. What is the correct cash in bank balance as of December 31,2021?

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter6: Bank Accounts, Cash Funds, And Internal Controls

Section: Chapter Questions

Problem 5DQ

See similar textbooks

Similar questions

The bank reconciliation shows the following adjustments: Deposits in transit: $1,234 Outstanding checks: $558 Bank service charges: $50 NSF checks: $250 Prepare the correcting journal entry.
The bank reconciliation shows the following adjustments. Deposits in transit: $526 Outstanding checks: $328 Bank charges: $55 NSF checks: $69 Prepare the correcting journal entry.
Using the following information, prepare a bank reconciliation. Bank balance: $3,678 Book balance: $2,547 Deposits in transit: $321 Outstanding checks: $108 and $334 Bank charges: $25 Notes receivable: $1,000; interest: $35
Using the following information, prepare a bank reconciliation. Bank balance: $12,565. Book balance: $13,744. Deposits in transit: $2,509. Outstanding checks: $1,777. Bank charges: $125. Bank incorrectly charged the account for $412. The bank will correct the error next month. Check number 1879 correctly cleared the bank in the amount of $562 but posted in the accounting records as $652. This check was expensed to Utilities Expense.
Domingo Company received the following bank statement. Using PA9, prepare the bank reconciliation.
The following bank reconciliation is presented for HRCA Company for the month of November 2020: Balance per bank statement, Nov 30 P 3,600,000 Add: Deposit in transit 800,000 4,400,000 Less: Outstanding checks P 1,200,000 Bank credit recorded in error 200,000 1,400.000 Balance per book statement, Nov 30 P 3,000,000 Data per bank statement for the month of December follow: December deposits (includes note collected of P1,000,000 for Char) 5,500,000 December disbursements (including NSF, P350,000 and service charge, P50,000) 4,400,000 All items that were outstanding on November 30 cleared through the bank in December, including the bank credit. In addition, checks amounting to P500,000 were outstanding and deposits of P700,000 were in transit on December 31. What is the amount of cash disbursements per book in December?
In preparing its bank reconciliation for the month of April 2021, Oriole, Inc. has available the following information. Balance per bank statement, 4/30/21 NSF check returned with 4/30/21 bank statement Deposits in transit, 4/30/21 Outstanding checks, 4/30/21 Bank service charges for April $79300 970 O $78250. O $77430. $78720. $78400. 9300 10200 80 What should be the adjusted cash balance at April 30, 2021?
17. In preparing its August 31, 2022 bank reconciliation, AA Corp. has available following information: Balance per bank statement, 8/31/22, P18, 050 Deposit in transit, 8/31/22,P3, 250 Return of customer’s check for insufficient funds, 8/29/22, P600 Outstanding checks, 8/31/22, P2, 750 Bank service charges for August, P100 Check disbursement recorded in August (correct amount is P5,000), P500 AA deposited P15,000 in August but credited by bank at, P1,500 What is the unadjusted balance per book on August 31, 2021?