The books of Cajardo Service, Inc. disclosed a cash balance of P687,570 on December 31, 2010. The bank statement as of December 31 showed a balance of P547,800. Additional information that might be useful in reconciling the two balances follows: A. Check No. 748 for P30,000 was originally recorded on the books as P45,000. B. A customer’s note dated September 25 was discounted on October 12. The note was dishonored on December 29, the note’s maturity date. The bank charged Cajardo’s account for P142,650, including a protest fee of P2,650. C. The deposit of December 24 was recorded on the books as P28,950 but it was actually a deposit of P27,000. D. Outstanding checks totaled P98,850 as of December 31. E. There was a bank service charge for December of P2,100 not yet recorded on the books. F. Cajardo’s account had been charged on December 26 for a customer’s NSF check for P12,960. G. Cajardo properly deposited P6,000 on December 3 that was not recorded by the bank. H. Receipts of December 31 for P134, 250 were recorded by the bank on January 2. I. A bank memo stated that a customer’s note for P45, 000 and interest of P1,650 had been collected on December 27 and the bank charge P360 collection fee. Based on the above and the result of your audit, answer the following questions: 1. What is the adjusted cash in bank balance on December 31? 2. The net adjustment to cash as of December 31, 2010 would be a credit of:

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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The books of Cajardo Service, Inc. disclosed a cash balance of P687,570 on December 31, 2010. The bank statement as of December 31 showed a balance of P547,800. Additional information that might be useful in reconciling the two balances follows: A. Check No. 748 for P30,000 was originally recorded on the books as P45,000. B. A customer’s note dated September 25 was discounted on October 12. The note was dishonored on December 29, the note’s maturity date. The bank charged Cajardo’s account for P142,650, including a protest fee of P2,650. C. The deposit of December 24 was recorded on the books as P28,950 but it was actually a deposit of P27,000. D. Outstanding checks totaled P98,850 as of December 31. E. There was a bank service charge for December of P2,100 not yet recorded on the books. F. Cajardo’s account had been charged on December 26 for a customer’s NSF check for P12,960. G. Cajardo properly deposited P6,000 on December 3 that was not recorded by the bank. H. Receipts of December 31 for P134, 250 were recorded by the bank on January 2. I. A bank memo stated that a customer’s note for P45, 000 and interest of P1,650 had been collected on December 27 and the bank charge P360 collection fee. Based on the above and the result of your audit, answer the following questions: 1. What is the adjusted cash in bank balance on December 31? 2. The net adjustment to cash as of December 31, 2010 would be a credit of:

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