The books of Spaghetti Company disclosed a cash balance of P691,720 on June 30. The bank statement as of June 30 showed a balance of P556,800. Additional information that might be useful in reconciling the two balances follows: * Check No. 128 for P13,000 was erroneously recorded in the check register as P30,000. * A customer's note dated March 31 was discounted on April 12. The note was dishonored on June 29 (maturity date). The bank charged Spaghetti's account for P142,650, which includes a protest fee of P420. The deposit of June 24 was recorded on the books as P28,950 but it was actually a deposit of P29,850. * Outstanding checks totaled P98,850 as of June 30. * There were bank service charges for June of P2,100 not yet recorded on the books. * Spaghetti's account had been charged on June 26 for a customer's NSF check for P12,960. Spaghetti properly deposited P6,000 on June 30 that was not recorded by the bank. Receipts of June 30 for P134,250 were recorded by the bank on July 2. * A bank memo stated that a customer's note for P45,000 and interest of P1,650 had been collected on June 27 and the bank charged a P360 collection fee. 42. How much is the correct cash balance at June 30? A. P564,200 B. P591,720 C. P598,200 D. P596,400 43. How much is the net adjustment to the cash account? C. P93,520 debit A. P41,400 credit B. P41,400 debit D. P93,520 credit
The books of Spaghetti Company disclosed a cash balance of P691,720 on June 30. The bank statement as of June 30 showed a balance of P556,800. Additional information that might be useful in reconciling the two balances follows: * Check No. 128 for P13,000 was erroneously recorded in the check register as P30,000. * A customer's note dated March 31 was discounted on April 12. The note was dishonored on June 29 (maturity date). The bank charged Spaghetti's account for P142,650, which includes a protest fee of P420. The deposit of June 24 was recorded on the books as P28,950 but it was actually a deposit of P29,850. * Outstanding checks totaled P98,850 as of June 30. * There were bank service charges for June of P2,100 not yet recorded on the books. * Spaghetti's account had been charged on June 26 for a customer's NSF check for P12,960. Spaghetti properly deposited P6,000 on June 30 that was not recorded by the bank. Receipts of June 30 for P134,250 were recorded by the bank on July 2. * A bank memo stated that a customer's note for P45,000 and interest of P1,650 had been collected on June 27 and the bank charged a P360 collection fee. 42. How much is the correct cash balance at June 30? A. P564,200 B. P591,720 C. P598,200 D. P596,400 43. How much is the net adjustment to the cash account? C. P93,520 debit A. P41,400 credit B. P41,400 debit D. P93,520 credit
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter8: Sarbanes-oxley, Internal Control, And Cash
Section: Chapter Questions
Problem 18E
Related questions
Question
Transcribed Image Text:The books of Spaghetti Company disclosed a cash balance of P691,720 on June 30. The bank statem ent
as of June 30 showed a balance of P556,800. Additional information that might be useful in reconciling the
two balances follows:
* Check No. 128 for P13,000 was erroneously recorded in the check register as P30,000.
* A customer's note dated March 31 was discounted on April 12. The note was dishonored on June
29 (maturity date). The bank charged Spaghetti's account for P142,650, which includes a protest
fee of P420.
The deposit of June 24 was recorded on the books as P28,950 but it was actually a deposit of
P29,850.
Outstanding checks totaled P98,850 as of June 30.
* There were bank service charges for June of P2,100 not yet recorded on the books.
* Spaghetti's account had been charged on June 26 for a customer's NSF check for P12,960.
* Spaghetti properly deposited P6,000 on June 30 that was not recorded by the bank.
Receipts of June 30 for P134,250 were recorded by the bank on July 2.
* A bank memo stated that a customer's note for P45,000 and interest of P1,650 had been collected
on June 27 and the bank charged a P360 collection fee.
42. How much is the correct cash balance at June 30?
A. P564,200
B. P591,720
C. P598,200
D. P596,400
43. How much is the net adjustment to the cash account?
C. P93,520 debit
A. P41,400 credit
B. P41,400 debit
D. P93,520 credit
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning